Owners and managers at SMEs across the Midlands could be losing out and exposing themselves to unnecessary risks by checking websites for insurance costs, according to business continuity experts at Cowens Survival Capability.
Advisors at Cowens SC specialise in advising SMEs across a range of sectors on how to minimise risks to their business, first auditing businesses and then prescribing what insurance cover is necessary.
But, according to feedback from Cowens SC advisors, too many companies are relying on price comparison websites and information found on the internet to make decisions about insurance cover that are based on cost, rather than requirement.
Grant Scott, from Cowens SC, commented: “Far too many times, when we have been to a potential client for the first time, we have found that they are turning to the internet for advice.
“While some sites can be of benefit and informative, there is no way that they can assess the full risks to a business that could lead to business interruption and, in the worst-case scenario, to that business not surviving.”
Stuart added: “SMEs are working hard to survive in the current economic climate and there is pressure to manage the costs. They must seek the expert assistance of their insurance broker who should be someone who fully understands the intricate details of warranties.”
According to figures from Cowens SC, it is calculated that 67 per cent of businesses who suffer a major insurance claim will go out of business within two years of the incident because they have failed to cover themselves adequately.
For more information, visit www.cowenssc.co.uk
