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3rd April 2008
New campaign to help under-prepared independent retailers
The Association of British Insurers (ABI) and the government have launched a new campaign underlining the importance of contingency planning for independent retailers and other small businesses.
According to recent research by Axa Insurance as many as 70 per cent of small companies, including small shops and wholesalers, could go out of business if struck by a major emergency within the first year of existence.
Stephen Haddrill, the Director General of the ABI, revealed that such firms could struggle if they were the victim of a major flood or a fire.
"Small to medium-sized firms are particularly vulnerable to the unexpected event that could bring them down," he said. "We have produced this guide following last summer's floods, when insurers dealt with over 27,000 claims from flooded firms and paid out £1 billion to them."
Mr Haddrill added: "During that time it became clear that many firms had inadequate or no plans in place to help them survive a major incident. I urge all firms to plan for the unexpected - doing so will make the difference between survival and going under should the worst happen."
The Axa Insurance research also revealed that two-thirds of businesses had no plans in place to deal with a sudden outbreak of fire or a flood.
(c) 2008 Adfero Ltd.
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