Nearly two thirds (61 per cent) of businesses said that staff would be unable to attend work and nearly half (48 per cent) said they would experience reduced profits.

Frances Coulson, R3 President, comments:

“These are worrying findings. Last year the weather caught us all off guard and the detrimental economic impact was widely reported. It seems as though a few days of icy weather this year could easily snowball into a financial disaster, especially for struggling businesses. They should be planning for the worst to avoid taking a real hit if trading suffers.”

The survey found that six per cent of business thought that adverse weather conditions could tip them into insolvency. In the retail and distribution sector, the findings were considerably higher than the national average, with 11 per cent of businesses worrying that severe winter weather could tip them into insolvency.

Frances Coulson continued: “It comes as no surprise that the retail sector is most concerned. Earlier in the year, R3′s Business Distress Index showed that retail businesses are more likely than any other to be concerned about their debt levels (41 per cent). The research also found that 58 per cent of retailers were experiencing a decrease in profit which was 24 per cent higher than the cross sector average.

“Although the last retail figures showed sales were up, people are likely to curb their spending again after Christmas. Retailers also have quarter day to contend with at the end of December, which will mean many will be paying landlords a hefty lump sum. If a business is already struggling and does not think it will withstand the pressures of severe winter weather, it should seek the advice of a professional to ensure it has the best chance of survival.”

Ratings agency Standard and Poor’s is considering downgrading the credit rating of a number of major international insurers on the back of fears about Government debt in the Eurozone.

If this happens, many brokers could find the risk profile of their policy portfolio increasing sharply, which would have major knock-on effect on premiums.

It could also leave some brokers and independent financial advisors exposed to professional indemnity claims.

PI Expert MD Jenny Carter-Vaughan said: “The problem facing insurers is that to maintain their credit ratings, they have placed their funds in what have traditionally been considered safe investments.

“The current economic crisis has changed the face of safe investments – investments in financial institutions, banks and government securities have been undermined, maybe irretrievably.

“Reinforcing this view, Standard and Poor’s has stated that the review of the insurers’ ratings will be based on the review of the Eurozone member governments. It follows that if there is a downgrade in the credit rating of the government underwriting the securities, then the insurers investing in them will also suffer a downgrade in their credit rating.”

It is this potential downgrading which, if it happens midway through a policy, could increase potential exposure to a professional indemnity claim.

“For Insurance brokers and IFA’s these potential downgrades are significant cause for concern,” added Carter-Vaughan.

“The British Insurance Brokers Association recommends that members place cover where possible with ‘A Rated’ insurers. As a rule of thumb to recommend an unrated insurer or one with a lower rating must be justifiable if a professional indemnity claim is to be avoided.

“The recent Standard and Poor’s negative ratings warning involves some heavy hitters within the insurance industry so brokers will have to consider how the Euro crisis could affect them over the period of a policy.

“Now, more than ever, it will be important for brokers to document the consideration that they have given to the financial security aspect of an insurer when making their recommendation – a factor which many brokers would not have even thought to question with the likes of Axa, Aviva or Allianz in the past.”

The energy provider to businesses says it expects to see a 70 per cent increase in the number of call outs to businesses needing emergency repair work during the winter months, often due to boiler and heating breakdowns.

Despite this, many businesses overlook the regular, preventative checks on gas and electrical equipment that can maintain effi­ciency and ensure businesses safeguard their operations against these mishaps.

The following tips can help business keep the lights on even in the most severe weather:

1. Give your boiler a healthcheck: Check to make sure your boiler is working properly before winter sets in. The older your boiler the more inefficient it will be – new energy efficient boilers can help you cut your heating bill by up to 20 per cent per year. Your heating appliances should be serviced once a year by a Gas Safe registered engineer.
2. Check your central heating: Run your central heating on full to check that your radiators heat up properly. If you can feel any cold spots, especially at the top, they may need bleeding. Bleeding your radiators is a simple task that will make your business warmer and your central heating system more efficient.
3. Prepare your business for the cold: Make sure your heating and drainage systems are in tip-top condition. Start by checking that your pipes are not too exposed to the cold. You should also lag water tanks and pipes to conserve heat and prevent freezing. Spending time to prepare your business now could prevent a crisis when temperatures plummet.
4. Make your business energy efficient: Lighting accounts for 25 per cent of a company’s total electricity bill, and energy efficient lighting can help to cut these costs by up to a third. Use standby power savers that automatically turn appliances off, such as computer equipment, when it’s not being used. Each of these will save around £30 a year on your energy bills. Also speak to your provider about getting a smart meter. This will allow you to pay accurate bills based on accurate readings and give you valuable insight into your energy use allowing you to take measures to reduce it.
5. Have a back-up plan: Make sure your business is covered by a Service & Maintenance contract. Use a trusted brand and seek assurances that engineer will be on site quickly if something does go wrong with your gas appliances or electrical installation. Putting this plan in place now can prevent a breakdown turning into a debilitating business crisis later on.

Phil Manock, British Gas Commercial Services, said: “During the winter months, thousands of businesses are hit by crises caused by the cold weather that can cost them thousands of pounds and seriously impact their daily operations. However, this is often caused by their failure to prepare for the cold through regular maintenance. Taking simple steps now to make sure your heating system is in top working condition and that you have a back-up plan if something does go wrong can save vital time and money in the long term.”

1. Contactless Christmas – More customers now have the capability on their credit or debit cards to pay via contactless terminals. Once the card has been tapped against the contactless reader, it normally takes less than one second to complete the payment. The whole transaction is significantly faster than cash or chip and PIN, reducing queues at the tills during this busy period.
2. Speedy spending – A broadband connection not only speeds up payment processing with a broadband connected card payment terminal but it frees up your phone line if customers want to call you whilst payments are being processed. Critical at this time of year when good customer service goes a long way.
3. S’no’w guarantees – Heavy snow fall last year created chaos for Christmas deliveries. If you deliver products or services, keep your customers informed about timings and if snow does fall, contact your customers to update them on revised delivery schedules.
4. Stock’ing’ fillers – Think ahead and plan your stock levels – what’s likely to sell quick and what products are less in demand that you can save you space on? Unexpected snow not only impacts deliveries to your customers but also stock so check delivery schedules with your suppliers.
5. Keep it merry – Christmas can be a stressful time of year but a reliable and cheerful service is always well received by customers and can alleviate some of the pressures that Christmas brings to you and your customers.

The findings show that more needs to be done to educate small businesses about the risk of losing key staff members, said Iain McGowan, head of savings and protection at Scottish Widows.

The Scottish Widows Business Protection Report, which details research carried out with over 500 UK business decision makers, shows that the majority of businesses are still reluctant to protect themselves from the unexpected loss of a business owner or key member of staff.

By their nature smaller businesses are more exposed to certain risks and in particular the loss of a key player. Despite this, 60 per cent say they do not think they need a protection policy in place. And the research also shows that only six per cent of UK businesses have financial protection to cover the death of key person while only four per cent have protection for a key person suffering a critical illness.

“Small businesses are the lifeblood of the UK economy making up 99 per cent of the private sector. Even in these challenging economic times today’s entrepreneurs must be prepared for the financial impact that a critical illness or death of a key employee could have on their business,” said McGowan.

“Businesses need to consider the key risks they face to all aspects of their operation. This includes planning for the very real risks their business could face from death, critical illness, or long term incapacity of a key employee or business owner. While small businesses receive assistance and advice when starting up, they also need help in taking a long term financial view of their business and planning for risks accordingly.

“This responsibility for further education and understanding sits with the industry, Government and businesses themselves.”

John Walker, chairman, Federation of Small Businesses said: “The loss, even temporarily, of a key staff member or other interruption is always going to hit the smallest firms the hardest. A single member of staff could be half your workforce. It is therefore vital that small businesses get their contingency plans in place now, not when trouble strikes.”

In recent years there have been a number of incidents in which the improper storage of fireworks has led to explosions, serious injuries and in some cases even fatalities. This has resulted in a tightening of the laws surrounding the correct storage of fireworks, including reworked guidelines by the Health & Safety Executive (HSE).

To help retailers stay within the law, and to ensure they stay covered should they need to make an insurance claim, More Th>n Business has compiled a list of top tips on the safe storage of fireworks:

1. Ensure that you do not exceed the maximum permitted volume of fireworks for your premises.

Up to 250kg may be stored in a locked metal container.

Any more (up to 1,000kg) must be stored in a separate spark-proof store building, detached from any dwelling and constructed of brick, stone, concrete or iron.

The volume of fireworks permitted on the shop floor is dependent on the size of the publicly accessible sales area. This ranges from 12.5kg in 20m2, to 75kg in a 500m sales area.

2. Where there are five or more employees, a full risk assessment must be carried out and documented.

3. Up to 12.5kg of fireworks may be kept in showcases, containers, cupboards or drawers, but these must remain locked shut to prevent unauthorised access. Electrical fittings in such cabinets should be disconnected.

4. Glass showcases must not be displayed in shop windows.

5. Sources of ignition and flammable materials should be kept at safe distance, this includes smoking.

6. All fireworks sold should comply with British Standards BS 7714: Part 2: 1988.

7. Matches are not fireworks and should not be stored with them.

8. Sparklers are fireworks and should be stored in the same way as other fireworks.

9. If more than 75kg of fireworks is being stored, a fire detection system should be fitted to protect anyone living in the vicinity. Access routes should also be provided that are separate from the store, and such a store should be closed off to prevent unauthorised access.

10. Most importantly, retailers must ensure they have obtained the correct licence from the local authority under the Firework Regulations 2004.

Mark Christer, managing director, More Th>n commented: “It is imperative that retailers of fireworks ensure that they are operating in accordance with all legal requirements and guidelines to make certain they stay covered by their insurance for any eventuality.”

“More Th>n Business recommends that retailers not only follow the guidelines offered here, but also familiarise themselves with the detailed guidance offered by the HSE, and the requirements of their individual insurance policies.”

The deal means that the AA is launching new products to add to its commercial range, including insurance for recovery operators, the taxi trade, motor traders and repairers and self drive hire companies.

Andrew Strong, the AA’s chief executive, points out that these motor industry products align well with the AA’s motoring pedigree.

“The AA is a household name for roadside assistance as well as motor insurance, including van and commercial vehicle cover. Adding specific motor trade insurance is a natural extension to the range and, in addition, forms a perfect fit with the AA’s fleet business breakdown cover.”

As part of the deal, Bollington is offering AA fleet cover to its own commercial customers.

Paul Moors, chairman of the Bollington Group said: “We have worked extremely hard to win this imaginative and creative relationship with the AA. We have over 40 years’ experience in the commercial broking sector and I believe that this is one of the most significant new ventures in the commercial market.

“Our broking experience, coupled with the AA’s marketing ability, is a perfect arrangement. It offers huge potential including development of new services created through AA’s financial services such as business credit card or fuel cards.”

Strong said that in the past, the AA has concentrated on distribution of commercial insurance through customers who buy other insurance products and, while that has been growing steadily, it represents a small part of the total business market: “There’s a greater need today for advice and tailoring products to suit individual requirements.  Now we have that opportunity through our new relationship with Bollington – not just in the motor sector but amongst small businesses of every sort.”

Apart from the motor trade, the AA offers cover for pubs, restaurants, hotels and guest houses; small businesses such as traders, contractors, landlords, consultants and shop keepers; and van and small commercial vehicle fleet cover. Risks include buildings and contents, liability, employers’ and professional indemnity, tools and goods in transit.

The Scottish Widows Business Protection Report, which details research carried out with over 500 UK business decision makers, shows that the majority of businesses are still reluctant to protect themselves from the unexpected happening to a business owner or key member of staff. Just 13 per cent of businesses who have identified the importance of a key person hold insurance that would protect the business against their loss and despite such a low take up of business protection, 60 per cent of businesses admit that they would definitely not survive the loss of a key person.

In fact, it is more likely that UK businesses will insure office equipment, such as the photocopier, against breakdown than they are to insure a key individual whose skill sets are vital to the future survival of the business. The research shows that over a quarter (27 per cent) of businesses have insurance for office equipment in place, compared to just six per cent with financial protection if a key person dies and four per cent with protection if a key person suffers a critical illness.

A logical conclusion as to why the take up of Business Protection is so low is down to a lack of knowledge and understanding of the benefits – with 38 per cent of businesses not taking out cover as they don’t see its’ value, 16 per cent saying they hadn’t even thought about taking it out and 17 per cent saying they thought it would be too expensive. This highlights the value of sound holistic financial advice which could potentially ensure a better informed and better protected business population.

Unfortunately, despite the majority of businesses openly acknowledging that the loss of a key person would have a severe, if not fatal impact on their future survival, just 29 per cent have actually sought any form of advice on business protection, whether through an Independent financial adviser, their bank or any other resource such as their solicitor, accountant or even family and friends.

In addition, the research highlights that in the last 12 months almost a quarter (27 per cent) of business owners have invested their own money into their business, while a further 13 per cent expect that they will have to do so in the coming year. If people are to put personal assets at risk then it is vital that they take the necessary steps to prevent a damaging impact not just on their business, but potentially their families and personal lives.

Businesses are also worried about the future impact recent and proposed government spending cuts will have on them, with 53 per cent stating these will have a negative impact, despite a pledge by government to provide further support, through competition reform and reducing the regulatory requirements imposed on them.

Iain McGowan, head of savings and protection at Scottish Widows commented: “There are many reasons for business owners failing to take action. In some cases, this represents a failure to plan properly or a lack of understanding of the benefits of business protection. Perhaps even a refusal to contemplate the death or critical illness of a colleague. However the potential consequences to the business, demonstrate the importance of protecting arguably the one thing that can ensure its future survival; its employees.

Allianz will provide tailored solutions, designed to meet the specific needs of this market. The packages will cover a wide range of risks including property, surgery contents, liability and business interruption.

David Martin, head of SME, affinity and broker markets at Allianz, explained: “The package we have developed for Farleys offers a strong and specialised solution which is ideal for niche client markets. Our SME business is thriving as we continue to develop our proposition and we aim to expand into other client sectors in the near future.”

Marilyn Armitage, director of claims & schemes at Farleys Insurance Brokers, added: “Allianz understood our objective of offering an exclusive portfolio of cover and services, designed and costed specifically to suit the changing needs and strategies to small businesses.”

Whilst making sure the right insurance is in place is important for SMEs, as a specialist small business insurer, Hiscox understands that business owners want to focus on what they do best – running their business.

So it has created a Business Insurance Decision Tree in the form of an infographic to help steer small business owners through the different types of insurance available to them. The Decision Tree looks at variables such as whether you work from home or in an office, how many employees you have and what type of property you own, suggesting applicable cover which best suits an SME’s needs.

So whether it is office contents insurance for damage to property, employers’ liability for those with employees, professional indemnity insurance when offering advice, or public liability insurance, the Business Insurance Decision Tree can help clarify which insurance is suitable.

Hiscox SME underwriting manager, Deepak Soni, commented: “SMEs are experts in their area, but we don’t expect them to be experts in insurance, that’s what we are here for. No two businesses are the same, so the Business Insurance Decision Tree is a useful tool to help SMEs understand the risks they face and get the right cover in place.”

The Decision Tree is available on the Hiscox website at http://www.hiscox.co.uk/business-insurance/tips-and-information/which-business-insurance-is-right/

Hiscox insures more than 100,000 small businesses in the UK, offering a range of business products, visit now for further information.