SMEs face considerable challenge battling the impact of coronavirus
Findings from GlobalData’s 2019 UK SME Insurance Survey suggest that up to 4.8 million SMEs could be vulnerable to disruption caused by coronavirus.
The spread of the coronavirus around the UK has left many businesses wondering what insurance cover they have in place to help mitigate the impact should their operations be disrupted. Business interruption would be the policy most likely to help businesses in such an event, but GlobalData research has found that only 17.3% of SMEs surveyed have this cover in place, leaving potentially 4.8 million exposed.
However, SMEs that have business interruption cover in place will not necessarily be able to claim should they be impacted by the spread of coronavirus. Insurers have clarified whether their policies will provide protection, with numerous providers indicating that their policies will not allow for claims due to the policy wording used.
This outcome will undoubtedly be concerning for businesses, yet there has been some good news in recent days that could help them continue and absorb financial costs. The announcements made by some UK banks and plans revealed by the government in the 2020 Budget, including the launch of a temporary coronavirus loan scheme, will be welcomed by SMEs.
Although the situation is concerning for SMEs, it highlights the need for all customers to be fully aware of the terms of the policies they hold and to speak with the relevant parties, in order to ensure their cover is appropriate for their needs.