Why SMEs should take action to avert accident claims
Staff accidents and ill-health can cause severe disruption for many small businesses, as many of these situations will come with financial costs attached.
From lost sales to potential claims, the financial hits could be made a lot easier to manage should a company have sufficient Personal Accident cover.
That is according to Ageas Insurance Limited, who reported that 40% of firms saw an employee take more than two weeks off work as a result of illness or an accident in the past year.
Despite this, only 61% of companies had personal accident cover at mainly executive levels, while less than a third had cover for all employees.
Microbusinesses and sole traders were found to be least likely to have personal accident cover and those with between 76 and 100 staff were most likely to have it.
While it is good news that businesses are reporting growth amid a strengthening economy, some of the firms could still be hit with issues should something go wrong.
Potential claims and the loss of staff could make running a business more difficult – especially in cases where staff numbers are low initially.
Personal accident cover helps to ensure that both businesses and their staff are able to deal with any issues should they occur – as accidents have the potential to be highly disruptive.
Staff can be just as important to a company as its equipment or products so it is recommended that good levels of support are given.
Spending on this type of insurance cover, as well as on other forms of essential protection, can provide a boost for staff and for a company in general.
Bosses with concerns over how their firm is run could opt for restructuring methods should they decide that their business could be managed more effectively.
Such an approach should help to reduce unnecessary spending while providing a clear overview of cash flows and business management issues.
By Phil Smith