Storm Eowyn looks set to cause disruption for UK SMEs this week, with strong and dangerous high winds as the Met Office issues a rare red warning.
Richard Tuplin, CEO of General Insurance Broking at Ardonagh Advisory is emphasising the importance of preparation for small and medium-sized enterprises (SMEs) as these unpredictable conditions pose significant risks, from financial instability to operational downtime, threatening the resilience of SMEs across various sectors.
"UK SMEs are the backbone of the economy, but they are particularly vulnerable to disruptions caused by severe weather. By implementing proactive measures and ensuring comprehensive insurance coverage, SMEs can reduce the impact of these challenges, maintain operations, and safeguard their financial stability." Richard Tuplin, CEO of General Insurance Broking
Severe weather can have wide-ranging effects on SMEs, with some of the most critical challenges including:
- Business interruption: Extreme weather can lead to forced closures, employee absences, and disruption to supply chains, leaving businesses unable to operate effectively.
- Property damage: High winds, can cause costly damage to business premises, including structural issues, equipment loss, and water ingress.
- Financial strain: Repair costs, coupled with reduced revenue during downtime, can significantly impact SMEs' cash flow, particularly for businesses with tight margins.
- Employee safety: High winds for employees traveling to and from work or operating in outdoor environments.
- Customer access: Adverse conditions can deter customers from visiting physical locations, reducing footfall and sales.
- Supply chain delays: Poor weather can disrupt logistics, resulting in delayed deliveries and stock shortages.
Richard advises SMEs to take the following steps to minimise risks and maintain business continuity during challenging weather conditions:
- Evaluate business continuity plans: Review and update continuity plans to address weather-related risks, ensuring employees understand their roles during disruptions.
- Secure premises: Inspect roofs, windows, and drainage systems to prevent damage caused by storms and potential flooding.
- Invest in temporary solutions: Consider alternative storage, workspace, or equipment options to maintain operations if primary facilities are compromised.
- Enable remote working: Where feasible, equip employees with the tools and support needed to work from home during severe weather.
- Monitor weather alerts: Stay informed about local conditions using reliable weather forecasting tools to anticipate potential disruptions.
- Maintain strong supplier relationships: Communicate proactively with suppliers to manage delays or changes in deliveries caused by adverse weather.
To further protect their operations, Richard is encouraging SMEs to adopt these proactive strategies:
- Review insurance coverage: Ensure policies cover weather-related damages, including business interruption, property damage, and liability risks.
- Perform risk assessments: Identify vulnerabilities specific to your business and address them through preventative measures.
- Invest in employee safety: Provide appropriate training and resources to safeguard employees during adverse conditions.
News article submitted by Chris Brown of Ardonagh Advisory.