SMALL companies in Scotland are facing a potential £148 million annual loss of revenue by failing to safeguard against business threats, according to new research.
The Lloyds TSB Insurance Big Issues for Small Businesses report revealed that more than 140,000 (47%) of microbusinesses in Scotland were affected by significant incidents, such as theft, vandalism or damage, in the past year alone.
Following this, almost half (44%) of those affected were unable to operate fully for longer than a week.
For around one in five (19%) it took up to a month to be fully operational, potentially risking a further £255m loss.
The research – which polled Scottish businesses with 10 or fewer employees – revealed that one in five (19%) of owners who have experienced an incident in the last year worried their business wouldn't survive as a result.
Yet a quarter (24%) of the country's small business owners haven't taken any measures to protect their company.
Damien McGarrigle, head of business insurance at Lloyds TSB Insurance, said: "These businesses are the backbone of the economy, but many are unnecessarily leaving themselves exposed and vulnerable without adequate protection in place.
"Unforeseen incidents are likely to have greater impact on a small business, which could jeopardise its future, putting a strain on owners and their families if they are under insured.
"Making sure appropriate insurance cover is in place safeguards against the main risks and liabilities, leaving business owners better positioned for success."
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