With the firm arrival of winter weather conditions SMEs are being warned to protect themselves with insurance

Searches for “business insurance” online rose quickly between January and February 2022, peaking at its highest point in the year between 13-19 February.

Businesses will be hoping for minimal disruption to their operations, but sudden damage to property and stock, as well as human-related factors, could lead to a major loss in earnings.

It remains to be seen how the weather will impact the UK in the years to come, but extreme weather events in recent years don’t make for good reading. However, business insurance could be a potential lifeline to businesses in the event of a flood, fire or other disaster.

Connor Campbell, business finance expert at NerdWallet, explains the importance of having business insurance in place to cover for any eventuality, as well as when it may be a good time to take out a policy.

“An insurance policy may cushion the blow of extreme weather events and minimise financial losses. It can even help prevent your business from going under in the face of a true worst-case scenario.

“For example, if trading is brought to a halt due to a flood at your shop, or a fire in your factory, a business interruption policy can help to tide you over until you can begin trading again.”

“Back in July, temperatures topped 40 degrees celsius across the UK, posing a risk to life. Just last year, storm Arwen took out the power for almost a million people in the North East of England and Scotland, threatening people, homes and business premises.

“With weather conditions becoming more erratic, it may be worth looking at your insurance options now and comparing policies to get ahead.

“The best thing about getting a comparison is that you aren’t obliged to take out the first policy you see and your offer may be eligible for a period of time whilst you make your decision.

“Typically, a business interruption insurance policy would be designed to cover lost income and other expenses if your business premises, including essential equipment, is damaged or disrupted. You business could be covered in the event of:

• Fire damage
• Flooding
• Storm damage
• Electrical faults
• Theft
• Restricted access to your property
• Damage at a supplier or customer’s premises
• Disease

“With the recent floods in the UK, getting cover now in anticipation of future damage may be essential for the survival of your business. It’s free to compare prices, so that may be the best place to start to give you peace of mind for the year ahead.”