Insurance is vital to protect your business against the risks that could stop it trading or severely impact its finances – but what are SMEs most concerned about as we enter a new decade?
If you’d have asked business owners what they feared most back at the turn of the century, then it’s hard to imagine anything outside of the Millennium Bug and bank fraud – broadband, social media, the economic crash and Brexit were all yet to exist.
But what are business owners most worried about as we enter the 2020s? A study from Global Data, provider of unique data, expert analysis & innovative solutions to companies in the world’s largest industries, found out.
What’s worrying SMEs in 2020?
The government is keen to point out that it’s ‘getting Brexit done’, but it’s a hollow promise given the fact that no-one has actually come up with a tangible meaning of what ‘getting Brexit done’ actually means.
And given this uncertainty is still prevalent four years after the referendum result that kicked it all off, it’s no surprise that Brexit is the biggest concern among business owners as we enter 2020.
This is followed by ‘an event which would stop us trading’ – something Brexit could easily cover – and then ‘cyber crime (eg. due to a virus or hacking)’.
It’s actually great news that cyber crime features so highly on the list, as it implies that businesses will be making cyber security a priority.
SME’s top 15 business concerns
- An event which would stop us trading
- Cyber crime (eg. due to a virus or hacking)
- Increase in business rates
- Damage to business reputation
- Negligence – making a mistake in a calculation
- Security and privacy breach
- Over dependence on one client
- Retaining staff
- Suppliers going into liquidation
- Increased pension contribution
- Increase in minimum wage
- Conducting international business
- GDPR compliance
- Dishonestly of employees
As you can see, SME owners also highlighted how being under-insured is a concern. The good news is there are business insurance products out there to mitigate against many of the issues highlighted above.
What insurance does your business need?
There’s actually no legal requirement to take out business insurance, unless you employ any members of staff, in which case you’ll need employers’ liability insurance.
If you’re worried about an event temporarily closing your business or if supply issues could stop it trading, you’ll need business interruption insurance, while public liability insurance is recommended if you in any way deal with members of the public, as this covers your business if you injure someone or damage something while providing your services.
If you offer any sort of professional advice, professional indemnity insurance covers you if a customer sues you because of a mistake in your work, while stock insurance is recommended if your business relies on selling goods.