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."