The economy isn’t the only threat to business stability. Some of the most common risks are often overlooked.
Fire, water loss, pests and power cuts can all cause severe and unanticipated disruption to your business, from loss of equipment and data, to extended loss of earnings.
Smoke them out
According to 2008 figures, there are now more rats than people in the UK, with estimates from Rentokil suggesting there could be up to 80 million. As well as carrying Weil’s disease, salmonella and other viruses and parasites, rats can gnaw through cables, wires, water pipes, walls, furniture and insulation. This not only causes surface damage, but can lead to fires or flooding.
If your business is in any way connected with the supply of food, a rat problem is likely to cause you to shut down, at least temporarily, to avoid contamination. This can lead both to loss of income and to a diminished reputation. But even in workplaces where public health is not such a factor, rats can cause thousands of pounds worth of damage by chewing through computer cables, cause fires by gnawing electrical wires, or lead to flooding by destroying pipework.
Pigeons aren’t just a problem if you happen to be standing underneath them. The birds can infest buildings in much the same way that rats do, eating or contaminating stored food, and fouling the space. Pigeon activity can also damage the structure of a building or block drainage systems.
In September 2009, it was announced that repairs to an historic building in Ludlow, Shropshire, are likely to cost up to £30,000 more than originally anticipated thanks to pigeon damage. Nests and droppings blocked the gutters of the 265-year-old Butter Cross, the town’s original butter market, causing the roof to leak. By insuring against infestation, you won’t have to worry if you spot the odd feather.
Up in smoke
According to the Association of British Insurers (ABI), fire damage costs British businesses £2 million every day, with one in every hundred businesses making a fire-related claim each year. Damage to property, loss of business, fines, compensation claims and insurance premiums add up to significant annual losses.
“Too many firms are seeing their profits literally going up in smoke,” said Jane Milne, the ABI”s head of property insurance. “Fire is increasingly putting jobs and services at risk, threatening the existence of some small businesses. The disruption caused to a firm can be devastating unless good fire safety and business continuity plans are in place.”
Gas leaks, electrical emergencies and faulty wiring can all lead to fires and are worth protecting yourself against.
Keep cosy
It may not sound like an emergency, but if the heating goes out in January, your staff won’t be happy and productivity levels will fall. If the cold is particularly severe, you could find yourself losing business days.
Similarly, a power cut or water supply interruption can make it impossible to carry on working. Keeping your business covered means there’s no need to panic.
also in this issue
Playing it safe
How a strong health and safety policy can protect your business.
