Biba publishes under-insurance guide for small businesses

The British Insurance Brokers' Association (Biba) has published a guide for small businesses to help them avoid under-insurance.

The new guide intends to help small businesses obtain the appropriate level of insurance cover to properly protect them against damage to or loss of their property, or injury caused to staff or others by their business.

Vulnerable

According to Biba, the guide has been launched at a time when businesses are potentially more vulnerable to the risks of under-insurance due to uncertainty in the run up to Brexit.

The guide, which is supported by the Federation of Small Businesses (FSB) and a number of other organisations, offers advice to businesses to help them get correct and regular valuations.

Biba Executive Director Graeme Trudgill said that the simple way to guarantee that businesses recover from a disaster is to make sure that the right levels of insurance are ready at the beginning or at renewal.

He added that Biba hopes that the latest guide will aid businesses in addressing the problem of under-insurance, which was highlighted in the Financial Conduct Authority's thematic review into commercial claims last year.

Vital

FSB National Chairman Mike Cherry commented: “It is vital small businesses aren't left in the lurch when the worst happens.”

“We would encourage all small firms to make sure their current insurance arrangements offer suitable protection, to mitigate the risks of business failure or constricted cash flow resulting from unexpected costs. This guide will be a helpful tool, especially for all those businesses who are currently under-insured.”