Many Limited company contractors admit to not having business interruption cover
According to recent research, many smaller sized businesses, such as Limited company contractors, are putting themselves at financial risk by operating without insurance cover.
A new report from Aviva has found that around two thirds (62%) of UK small businesses, may be leaving themselves financially vulnerable due to not having, or being unsure whether they have business interruption cover.
UK SME insurer Aviva found that despite such a high percentage of firms not having business interruption cover, one in five (21%) said that they had in fact experienced disruption to their company.
For a quarter of these firms, it took up to three months for them to get back to normal business trading – for the remainder this took them anything up to and beyond two years.
Robert Ledger, head of small business at Aviva, commented on the results, “We never want to think about the worst case scenario but when it comes to protecting your business, taking a few simple measures now could make a huge difference to your recovery.
“Ask yourself if you could afford to pay costs like wages from your own pocket until the business is back to being fully operational.
“If not, you should check you have business interruption insurance included in your policy.
“You should also consider creating a business continuity plan. It is quite straightforward – for a lot of small businesses it could be done in the time it takes to have coffee and a sandwich, and will play a vital role in helping you understand and manage any risk to your business operations, as well as helping assess the level of business interruption insurance you may need.”
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