UK companies have inadequate small business insurance in place to deal with unforeseen events such as floods, fires or acts of terrorism, it has been revealed.
Independent research commissioned by the British Insurance Brokers' Association has revealed that 45 per cent of firms have only rough plans to deal with the effects of flood or storm damage, or no business insurance at all.
This is despite £3 billion of flood claims since 2007 and the knowledge that 80 per cent of businesses affected by a major incident close down within 18 months.
Steve Foulsham, technical services manager at the group, commented that all companies should have adequate business insurance in place to deal with a major incident.
He added: "It is vital to raise and maintain awareness of the need for businesses to prepare for the potential impacts of a natural disaster or terrorist attack.
"The Buncefield Oil Depot fire, 7/7 bombings and continued incidents of flooding illustrate the need for all to plan for the unexpected."
Earlier this month, the NFEA - the national enterprise network predicted that business insurance holders are likely to see a continuation of the difficulties they faced in 2009, despite recent predictions about an upturn in the UK economy.
