In the contemporary business landscape, safeguarding the integrity of operations with a thorough risk assessment policy is critical for small and medium enterprises (SMEs).
Global insurer Hiscox recently embarked on an extensive study, canvassing the sentiments of 1,500 business owners and decision-makers.
The objective? To shed light on how UK SMEs are grappling with public risk scenarios.
This comprehensive research bore fruit to the inaugural Risk Readiness Report, a compendium intended to guide UK businesses through the intricacies of health and safety regulations.
SME Risk Assessment Policies
Among the striking findings is that an alarming third of SMEs are slack when it comes to reviewing their risk assessment policies.
Astonishingly, these businesses are letting a year, or even longer, pass by before making necessary adjustments.
This lax approach stands in stark contrast to the Health and Safety Executive’s advice of performing an annual review.
The data goes on to reveal that health and safety aren’t the top of the agenda for a quarter of surveyed businesses.
Moreover, an almost equivalent portion (24%) have failed to secure public liability insurance, a safety net that shields businesses from the legal and compensation costs tied to injuries and property damage or loss.
This leaves a sizable number of employees and customers unnecessarily exposed to various risks.
Potential Financial Risks and Beyond
The financial repercussions of these lapses are equally disconcerting.
Within the past year, the average SME has had to contend with approximately 3.2 accidents involving a member of the public.
Each accident carries an average compensation price tag of £17,185, a significant blow to any small business’s budget.
The consequences of these mishaps extend beyond immediate monetary burdens.
The study suggests that businesses grappling with accidents also witness a dip in performance indicators (34%), material solvency (29%), and even struggle to win over new customers (28%).
Nick Thornhill, Hiscox’s Direct and Partnerships Director, cautions business leaders to frequently reassess their existing health and safety mechanisms.
He stresses the need for adequate precautions to safeguard businesses, their employees, and customers.
Thornhill advocates for public liability insurance and an up-to-date risk assessment, shielding businesses from costly compensation and the legal expenses associated with a claim.
Summary
The revelations of this report are a clarion call for SMEs to reassess their stance on risk assessment policies, health and safety, and insurance coverages.
It is a timely reminder of the importance of staying prepared and creating a safer and more secure environment for all stakeholders involved.
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