New research out today shows that many entrepreneurs aren't really prepared for a disaster and many have holes in their insurance policies. Jon Card says this isn't that surprising but they are taking a risk
Growing Businesses have a lot of risks to mitigate: cashflow, the competition, staff issues etc. It isn’t an easy life running a business but it’s the life you chose and you did so because you relished the challenge and wanted the rewards. Entrepreneurs are by their very nature risk takers and so it wasn’t surprising to read today that many aren’t fully insured. Brokerage Oval Insurance has released figures which show that just only a quarter of entrepreneurs feel they are ‘very well prepared for a disaster’. Many of you are taking chances, it would appear, and probably see insurance as dead money from which you can get no return.
The floods which devastated many parts of the country this year caught everyone by surprise, not to mention a few businesses. Growing Business magazine spoke to many of the affected, some were in a worse state than others. We also know of some very successful firms which wouldn’t be here today if it hadn’t been for major insurance pay-outs. Take ASOS (As Seen on Screen), for instance, the cut-price celebrity clothing company had its warehouse in Hemel Hempstead when the Buncefield oil depot blew its lid. Its stock was wrecked and the business couldn’t trade for weeks, but it managed to bounce back. This is because the company was insured to the hilt – not just for stock but also for business continuity. Sadly, the research from Oval shows that there is likely to be many good companies out there, but unlike ASOS they are insured and won't reach their full potential if disaster happens. Also, should a major flood or fire affect you and you aren’t insured – is it really just bad luck if you’re company goes down the tubes?
A regular review with your insurer or broker is a good idea, especially when you're growing fast. Policies can get old quickly when your business is developing on many levels. You are likely to be taking a few chances over the next year. As I said, you’re a risk taker – but how much do you really want to gamble?