By Claire West
Businesses across the UK shouldn’t be afraid of taking risks — as long as their insurance programmes mean all eventualities are covered.
That’s the view of Grant Scott, associate director at business continuity specialists Cowens Survival Capability.
“Smart firms are the ones who are not afraid to take a risk whatever the economic conditions. Some will only do this when things are going well but it needs to be done when there’s a recession,” said Grant.
“That’s the only way that companies will grow and develop through tough times but those making the business-critical decisions must ensure insurance cover is adequate should mistakes be made or opportunities simply not go to plan.”
According to Grant, the economy is being stifled because businesses are afraid of making the wrong decisions, whether that’s in the development of new products, embracing social media channels or installing new plant and equipment.
Grant said: “Many entrepreneurs will take risks but a number of SMEs are still cautious, particularly with investing money, but a full audit of business practices and relevant insurance policies should mean that balance sheets are protected.”
According to statistics, 67 per cent of businesses will fail within two years of a major insurance claim because of factors such as policies being inadequate or payouts being delayed because of errors in paperwork.
Richard Gant, a director at the FD Centre supported Grant’s views: “We advise a lot of companies across the UK on their financial arrangements and we have noticed that SMEs often want to do something different but are frightened of the potential consequences should something go wrong. Clearly, with the right insurance cover in place, then some of those concerns can be mitigated.”
For more information about Cowens Survival Capability, visit www.cowenssc.co.uk.