Don’t cut back, warns Biba

Biba is urging small businesses not to cut back on insurance.

In its 2009 manifesto, the institute says if budget pressures lead to firms reducing their insurance cover, they could be exposed – or face closure – if they are hit by flooding, fire or crime.

One of its key manifesto commitments this year is a pledge to work with the government and brokers to help small businesses in the economic downturn.

Eric Galbraith, Biba’s chief executive, said: “It is important that all businesses in the UK are resilient and have access to the best advice and affordable cover. Our priority for 2009 is to promote access to and the value of advice from insurance brokers.

“The current economic climate tends to promote a culture focused on price. Businesses and consumers must look at the cover and security provided, and seek advice from their broker who is best placed to provide this advice.

“We are particularly concerned about small businesses forced to make cutbacks,” he said. “They may believe that they can live without insurance until the economy recovers. However, our message is simple – the right insurance cover may be the difference between closure and survival.”

Other key issues flagged up in the manifesto include promoting better regulation and reducing outdated regulation. Biba is also committed to making UK roads safer and improving driver access to the motor insurance market.