The ABI says that seven out of ten small businesses would fold if they experienced a major emergency in their first year, and two-thirds have no contingency plans to deal with an emergency, such as a major flood or fire. The ABI has launched its Insurance for Small Business Guide to help small businesses make their contingency plans.

Stephen Haddrill, ABI Director General, said:

"Small to medium-sized firms are particularly vulnerable to the unexpected event that could bring them down. We have produced this guide following last summer’s floods, when insurers dealt with over 27,000 claims from flooded firms and paid out £1 billion to them.

"During that time it became clear that many firms had inadequate or no plans in place to help them survive a major incident. I urge all firms to plan for the unexpected - doing so will make the difference between survival and going under should the worst happen."