smallbusiness.co.uk: Helping your business think big

Small businesses have been hit hard by soaring insurance premiums, to the point where some have even had cover refused.

And the situation is likely to get worse before it gets better. Nick Goulding, the Forum of Private Business’ (FPB) chief, says that recent fire strikes could be another excuse for insurance providers to justify the spiralling premiums threatening the future of many small businesses.

The Forum of Private Business is backing a motion calling on the government to take an urgent lead to resolve the current crisis in the insurance industry.

But there are steps businesses can take to better manage their risk, and which may help them to secure the best insurance deal possible.

- Look at the potential dangers that could affect your business and build a strategy to deal with these problems.

- Shop around for quotes from different insurers.

- Have benchmarks in place that can identify the level of risk your business is exposed to.

- Get a breakdown of your insurance costs.

- Find out from your insurers if you can qualify for any benefits for having a good risk management policy in place.

Encouragingly for small businesses, Europe’s largest accountancy body, the Institute of Chartered Accountants in England and Wales, has published a guide to help small firms build a risk management process and assess the level of danger they are prepared to face.

To access the guide, go to www.icaew.co.uk/risk

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