AXA - Be Life Confident

Following Bob Geldof's call to 'Head for Edinburgh', over a million protesters are now set to descend on the city to campaign against world poverty as G8 leaders meet at Gleaneagles on 6 July 2005. Whilst the organisers call for peaceful protests, AXA is advising small business owners to make sure that they have adequate plans in place in the event of any disruption to their business and ability to trade.

Douglas Barnett, risk control strategy manager at AXA warned: "The 'Making Poverty History' campaign will bring hundreds of thousands of protestors to Scotland, and we can expect a number of these to be disruptive. However, for some small businesses this could be an excellent time to take advantage of extra trade, as long as they make the necessary preparations."

According to research conducted by AXA¹, four out of ten (42 per cent) small businesses in Scotland do not have any business continuity plans (BCP) in place. Worryingly, of those that do have a business continuity plan, 72 per cent have not tested their plans to see whether they would actually work in the event of an incident or disaster. Less than half (44 per cent) have put together their plans together with any professional help - so it is vital to run through them to ensure that they will be effective.

Barnett continued: "These findings are a real cause for concern. We would advise small businesses to test their business continuity plans on a regular basis. It seems that small businesses are ignoring the potential risks that they face, which could potentially do long term damage to their livelihoods. Whilst their insurance cover will help them to replace buildings and contents, it can often be much harder to recover from the damage to cash flow, reputation and customer relationships, caused by a serious interruption to their business."

AXA believes that small businesses must make business continuity planning a priority. Barnett continued: "Effective business continuity planning could control insurance premiums and make businesses more able to survive in the long term. We aim to give our small business customers an advantage in this respect."

AXA has compiled a list of the top eight considerations for small business owners in Scotland in preparation for the G8 Summit:

1. Have you considered how staff are going to get to and from work? It is likely that some roads will be closed and that there will be restrictions to public transport. What will you do if your staff or the business keyholder can't get to work?
2. Have you got the appropriate security in place? Increased customer numbers could impact on your ability to trade. Have you made arrangements for additional staff to be appropriately trained? Have you instructed your staff on what to do if protests turn violent?
3. What about stock levels? Will these be increased prior to the G8 Summit and how will they be replenished if there are transport restrictions? Small business owners also need to check that they have adequate insurance to cover for the increase in stock levels.
4. Handling cash? Have you thought about how you are going to make sure that any cash or valuables remaining on the premises are stored safely if you are unable to take money to the bank on the day? If you employ the services of contractors, what arrangements do you have if they are unable to access your premises?
5. Remember to make sure that your building is kept free from any potential fire or health and safety hazards e.g. fire exits are kept clear, waste is stored safely - there may be different priorities for emergency services during the summit.
6. Given that some of the organisers have suggested that individuals, churches and any other public buildings should be offered for accommodation - small business owners are advised to check that their existing insurance policy covers them prior to letting people stay in their building overnight. It is also imperative that the owner checks with their local fire officer to ensure that it is suitable for overnight occupancy.
7. Owners of unoccupied buildings should ensure their buildings are secure to prevent unauthorised access.
8. The events surrounding the G8 Summit are likely to have an impact over a large area of Scotland, not just Edinburgh so check your business continuity plans and be prepared!

For small businesses looking for advice and guidance on how to put a business continuity plan together, AXA has made a range of practical help available at www.axa4business.co.uk. These guides are free to download.

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