The Federation of Small Businesses has called on the government to provide extra protection for SME business owners who are affected by terrorism.
The report, ‘Small business as usual – strengthening resilience against 21st century terrorism’, calls on the Government to release the UK terror cover safety net, Pool Re, from an “outdated law” which prevents businesses from insuring themselves against ‘non-damage business disruption’ in the wake of a terror attack. Current rules do not cover loss of trade, or other impacts of modern terrorism.
The FSB is also urging the government to provide extra financial relief and allow businesses to delay bill payments to ease the pressure on short-term cash flow when they are affected by terrorism.
Pool Re, which was set up to provide insurers with the reinsurance to underpin writing policies, covers physical damage rather than business interruption.
Mike Cherry, FSB National Chairman, says: “Sadly, terrorism continues to be a regular feature of life in the UK and our thoughts are with all those who have suffered heart-breaking human tragedies following terrorist attacks. Terrorists aim to create loss and disruption to ordinary life, and that means we also need to be as prepared as possible to limit the potential damage on local economies if the worst happens.
“For a small business, the kind of disruption experienced in the aftermath of the London Bridge attack can be impossible to recover from. We need to review how we help small firms to bounce back from terrorist events so that if the worst happens, our communities can make a swift return to business as usual.
“We want small businesses to continue to play their part in defying the current and ongoing terror threat but they need to be supported to increase their resilience.”
Our business experts at Beavis Morgan work with many SMEs and entrepreneurs across a range of sectors, helping them set up and run their own businesses and guiding them through each stage of the process, whilst navigating the challenges and advising them in making the right decisions both now and for the future.
If you would like to find out more about how we can assist you and your business, contact Steve Govey or your usual Beavis Morgan Partner.
SME Adviser Series: Is your business protected against cyber threats?
SMEs must consider supply chain disruption in business continuity plans