The real cost of Christmas puts UK small businesses at risk

With only a seven week countdown to Christmas, employers might be forgiven for focusing all of their attention on the fun and frivolities of the festive season, however Lloyds TSB Business Insurance is urging small businesses to be mindful of the true cost of Christmas and the impact that the festive season can have on their business.

Lloyds TSB Insurance has found that an estimated one million small businesses are at serious risk for not having proper business insurance cover. This figure represents over a quarter of Britain’s small business population which presents worrying findings when The Federation of Small Businesses estimates that £1.2b worth of productivity will be lost when the UK heads for the Christmas shutdown.

Gary Hurry, of Lloyds TSB Insurance, says: “For the majority of small business owners, the Christmas shutdown is a major headache. Many shut down completely while others operate on skeleton staff until January. This lack of production is likely to result in a reduction in income and, consequently, serious issues affecting their business.

“We’re urging small business owners around the country to start preparing for this unsettling period by considering the risks their business faces and the impact these risks could potentially have on trading. Devising a plan that anticipates risk and guards against business disruption is advisable. It would be sensible to consider business interruption insurance to cover loss of revenue should you be forced to suspend trading.”

Crime and security are also a concern during the Christmas break as businesses are left unattended, continues Gary: “Crimes against small businesses can be very costly so it is essential to have appropriate insurance cover. Business owners must be particularly vigilant over Christmas while their premises are left unmanned and should seek extra security precautions to minimise the risks.”

Those considering updating their security system in preparation should consult their insurance company. Adds Gary: “Your insurance company should be consulted on security measures. They can advise you on minimum security requirements or exclusions to your policy. The installation of security technology such as alarms could potentially lead to a reduction in your insurance premiums.”

Lloyds TSB Insurance has drawn up a list of top tips that will help ensure this Christmas is a happy one for small businesses across the country:

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 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

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

Concludes Gary: “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.”