BI premiums fall on continuity plans

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20 February 2012

Companies with continuity plans usually enjoy better terms on their business interruption (BI) policies, according to research by the UK’s insurance broking body.

The British Insurance Brokers Association (BIBA) survey, done in collaboration with the UK Cabinet Office, found that while insurers usually offer discounts or improved terms on a BI policy, the majority of SME businesses continue to operate without a business continuity plan in place.

Of the insurers polled, 62% said having a business continuity plan meant BI premium discounts, reduced excesses and a greater variety of insurance. More than one in eight insurers offered better BI terms to businesses with a continuity plan.

BIBA Head of Corporate Affairs Graeme Trudgill described the results as “quite striking”, considering small business were the most vulnerable to any sort of disruption.

Minister for Cabinet Office Francis Maude said the survey “underlined the need for simple guidance on business continuity aimed at smaller firms”.