Britain’s most influential small business group is urging the home secretary to ensure swift support for SMEs affected by the wave of rioting which has swept Britain in the last ten days.
In a letter to Yvette Cooper, a copy of which has been seen by Sky News, the Federation of Small Businesses (FSB) called for her to facilitate fair treatment of SMEs (small and medium-sized enterprises) by the insurance industry.
It is also seeking coordinated efforts from the government, police and crime commissioners to communicate how uninsured small companies can claim for lost earnings under the Riot Compensation Act.
Tens of thousands of SMEs have seen trading hit amid violent rioting in town and city centres across the country.
Many business owners have boarded up shops on high streets in an effort to prevent physical damage to their premises.
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In the letter to the home secretary, Martin McTague, the FSB’s national chairman, said its members had been on the “front line” of some of the worst disorder to hit Britain in decades.
“Alongside supporting the police response, many have tried to protect their premises and are amongst the first in line the day after to help clean up their business, neighbourhoods and communities,” he wrote.
“Local authorities, insurance companies and politicians of all stripes, as you’ll agree, need to be ready to support their small businesses to rebuild, recover and get back on their feet.”
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Mr McTague gave particular focus to the insurance industry, which was accused by many companies of dragging its heels in response to COVID-related payouts.
“We will be looking for government support to ensure insurance companies treat small business claims with care and attention, and process them swiftly.
“We have met the insurance industry representatives prior to make this point.
“However, if post-riot support is not activated and small firms are not signposted, many without insurance could be left without any compensation to restart their business.”
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Mr McTague cited data showing that approximately 5,000 claims were made under the Riot (Damages) Act following more limited rioting in 2011, with nearly 10% of those filed by individuals and businesses with no insurance.
The scale of the final cost remains unclear, and will inevitably grow significantly if there is no swift conclusion to the current wave of unrest.
