The Federation of Small Businesses (FSB), which has long been concerned with the difficulties small businesses have in acquiring adequate and appropriate insurance, has taken an ‘if you can’t beat them, join them,’ approach, launching its own insurance service for members.
New and Increased Threats
The FSB has recognised that today, small businesses face new and increased threats, including cybercrime, extreme weather and terrorism, while the insurance market is growing increasingly competitive for SMEs.
One of the FSB’s main concerns has been the vulnerability of small businesses to flooding. FSB research has found that up to 75,000 smaller businesses at risk of flooding could currently struggle to find affordable flood insurance.
David Stallon, FSB’s commercial and operations director, said: “Increased and new kinds of threats facing small businesses – including flooding, cybercrime, terrorism and global supply chains – call for new types of insurance, yet many small businesses often struggle to get cover at all, or, if they do, are often either underinsured or don’t have the appropriate level of cover.”
An Insurance Service Designed for SMEs
In response to these concerns, the FSB has joined forces Markel Capital Holdings, an associated company of Abbey Legal Group which already runs the FSB Legal Helpline, to form Ruskin Square, an FCA-regulated broker start-up. Trading as’ FSB Insurance Service’, the new facility was launched for FSB members on 1st February.
The service aims to provide members with advice, business continuity planning, credit checks, valuation services, and enhanced cyber insurance. It will be run by insurance broker David Perry, who is a long-term member of the FSB and currently sits on the British Insurance Brokers Association’s (BIBA) Insurance Brokers Standards Committee and Small Brokers Advisory Board.
Mr Stallon says the FSB is “uniquely placed” to understand and reduce the insurance challenges facing the small business sector as a whole, while meeting the bespoke needs of individual members.
“As our insurance service is built by FSB, run by FSB and owned by FSB, it has different motivations and values.
“Our prime ambition is to support a thriving small business sector in the UK by giving our members timely and quality advice, as well as sourcing the most competitive premiums and the best tailored insurance packages.”
The FSB Insurance Service is included in both its Business Creation and Business Essentials memberships. To find out more about the service, visit the FSB Insurance Service page.
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