The real cost of Christmas for SMEs
6 December 2007
With less than three weeks to go until the Christmas shutdown, Lloyds TSB Insurance is urging Britain’s small business owners to take stock of the true cost of the festive season on their bottom line.
Research carried out by Lloyds TSB Insurance has found that an estimated one million small businesses in the UK - representing over a quarter of the small business population - are at serious risk for not having adequate business cover. This is a worrying finding when The Federation of Small Businesses estimates that £1.2bn worth of productivity will be lost when the UK heads for the Christmas shutdown.
Phil Loney, managing director of Lloyds TSB Insurance said, “It is important that SMEs plan for the Christmas shutdown by considering the risks their business faces and the impact these can have on trading. We strongly advise business owners to consider business interruption insurance to cover any loss of revenue should they be forced to suspend trading.”
Often the biggest risk that businesses face over the Christmas shutdown is crime and damage to premises. Phil Loney continued, “If your office is going to be closed over the break, think seriously about the security of your premises and any company vehicles. Crimes against small businesses can be very costly, so owners should seek extra security measures to minimise risks.
“To help minimise any risks, we’d advise business owners to talk to their insurance company who can advise on minimum security requirements or exclusions to policies. It’s also worth bearing in mind that the installation of security technology such as alarms could lead to a reduction in insurance premiums.”
Lloyds TSB Insurance has drawn up a list of top tips for businesses to ensure this Christmas doesn’t cause any serious risks to trading –
Make a comprehensive list of all your business assets and review your insurance policy to ensure that you have adequate cover should anything happen
It may sound obvious but ensure that all internal and external doors are closed and locked
Check all windows are closed and ensure valuable items are out of sight
Check your security alarms are in working order and that someone is contactable in the event of a crisis
Be careful what message you put on your answerphone and on email auto-responses - advertising you are closed is an invitation to burglars
Create contingency plans for dealing with all the major crises. Many insurance companies will reduce your premiums if you have a contingency plan in place
List everything that you think could possibly go wrong and decide who will be affected in every eventuality and how these risks could be minimised. It’s vital that copies of these documents are kept off-site, along with useful numbers and details of your insurance policies, in case your premises are destroyed
Programme your heating system to come on for a few hours a day whilst your premises are unoccupied in order to prevent pipes freezing and cracking
Update or create a database of key contacts in case of an emergency
Back up your data. Make copies of CDs, disks, tapes and paper information and store off site in an appropriate place according to material i.e. certain fire proof safes will protect paper stored, however, disks and tapes can be destroyed through heat damage at a much lower temperature
Loney added, “These tips should go some way towards helping businesses prepare for the Christmas shutdown. Now all that is left is to enjoy the festive break safe in the knowledge that you have done all you can to safeguard your business.”
