🎃 Boo! The Risks That Could Haunt Your Small Business

October isn’t just about pumpkins and trick-or-treaters. For small businesses, there are monsters lurking in the shadows, hidden risks that can creep up when you least expect them.

Some are invisible until disaster strikes. Others slowly drain your resources over time. Here are the four scariest risks that could haunt your business this Halloween, and how to keep them out.

👻 The Ghost of Underinsurance

Perhaps the most common and frightening spectre for SMEs, the Ghost of Underinsurance drifts silently through your operations, harmless, until the worst happens.

Imagine a fire at your warehouse. You think you’re covered, but the “ghost” reveals itself: your policy was based on last year’s valuation, and rebuilding costs have since soared. Suddenly, you’re facing a massive shortfall.

Underinsurance creeps in when sums insured are based on outdated figures, when property values rise, or when your business grows without your cover keeping pace.

How to Banish It:

• Annual Check-up: Treat an insurance review like a health check.
• Revalue Assets: Use a professional valuer for buildings, stock, and equipment.
• Factor in Growth: Expanded operations, new staff, or extra kit? Make sure your cover reflects those changes.

“Underinsurance is one of the biggest hidden risks for SMEs, many don’t realise it until it’s too late.”

🧛‍♂️ The Vampire of Cashflow

Every business needs a healthy flow of cash to survive. But the Vampire of Cashflow can quietly drain your financial lifeblood one unpaid invoice at a time.

This creature doesn’t bite once, it takes small, consistent sips, leaving your business weak and struggling. Late payments mean you can’t pay suppliers, cover wages, or invest in growth.

How to Banish It:

• Tighten Your Terms: State payment terms clearly and be ready to enforce them.
• Invoice Promptly: Send invoices the moment work is completed.
• Use Credit Checks: Before trading with a new client, check their credit. Registered FSB members can access free business credit checks every year, helping spot potential vampires before they strike.

⛈️ The Poltergeist of Floods & Storms

The Poltergeist is the master of chaos, unpredictable, destructive, and impossible to ignore.

For businesses, this can mean flash floods destroying stock, storms ripping off roofs, or fallen trees smashing delivery vans. The result? Major disruption, lost revenue, and costly repairs.

How to Banish It:

• Risk Assessment: Know if your premises are in a flood-prone or storm-exposed area.
• Secure Your Property: Install barriers, raise valuable stock, and secure loose equipment.
• Check Your Policy: Flood and storm damage aren’t always included as standard, confirm what’s covered under your current policy.

🧟‍♂️ The Zombie of Outdated Policies

This monster lurches along unnoticed, a policy you took out years ago, still technically “alive” but no longer fit for today’s world.

Think about it: do you use social media, cloud systems, or remote working? Risks like cybercrime and data theft may not be covered by a policy written five years ago. The Zombie provides a false sense of security until modern threats expose its limits.

How to Banish It:

• Regular Review: Make policy reviews part of your business routine.
• Check for Modern Risks: Cyber cover, data protection, and professional indemnity may be essential today.

Adapt and Evolve: As your business changes, so should your insurance.

👹 Don’t Let the Monsters In

You don’t need to face these spooky risks alone. With proactive steps, you can banish the monsters haunting your business.

Quick Checklist:

• Review your current policies, do they reflect your business today?
• Make use of your FSB member benefits, such as free credit checks.
• Speak to a broker who understands small business risk.

👉 Think of us as your business risk hunters, spotting hidden dangers before they strike. Don’t let the monsters in. Call 020 3883 7976 today.

This content is for general information only and is not intended to provide advice or a personal recommendation. Insurance cover is subject to the terms, conditions, and exclusions of the policy. Always consider your individual circumstances and seek professional advice before arranging insurance. External websites are not under our control and we are not responsible for their content.