Why a Business Continuity Plan (BCP) Matters for Every SME

Jaguar Land Rover recently shut down several UK factories after a major cyber-attack compromised its IT systems (Independent). The disruption hit thousands of employees and rippled across its supply chain. Around the same time, airport systems in Brussels, Berlin, and London were targeted, delaying hundreds of flights (BBC News).

It is not only large, high‑profile companies at risk. SMEs are frequent targets of cyberattacks, often with fewer resources to recover.

Nearly 43% of UK businesses reported a cyber breach or attack in the last 12 months - around 612,000 businesses (UK Government Cyber Security Breaches Survey 2025). Micro and small firms are just as vulnerable, with average disruption costs of over £1,600 per incident. For many, losses are far greater once downtime, lost contracts, and reputational damage are considered.

 

What Could Go Wrong Without a Plan?

Disruption is not limited to cyber-crime. SMEs face risks every day:

• Courier and Haulage Operators: a vehicle breakdown, major accident, or rising cases of physical attacks and thefts block deliveries.

• Media Professionals: Theft or damage to equipment halts projects. A ransomware attack locks users out of systems. Leaked customer details or unfinished work can jeopardise contracts and trust.

• Small Businesses: a flood or power outage forces closure, stock theft disrupts sales, damage to premises prevents trading, or supply chain disruption leaves them without goods to sell.

• Broker Networks: an office system crash stops client communications and compliance processes.

Insurance can help cover financial losses, but without a plan, your operations and reputation remain at risk.

Simple Steps to Create a Business Continuity Plan

A BCP doesn't need to be complicated. Even a short plan can make a big difference:

1. Identify critical operations — what keeps your business running (vehicles, staff, IT systems, client communication).

2. Assess risks — from cyberattacks and IT failures to weather events or staff shortages.

3. Define recovery strategies — backups, alternative suppliers, remote working options, spare equipment.

4. Record key contacts and responsibilities — staff roles, emergency suppliers, insurance contacts.

5. Resources & Tools — equipment, vehicles, backup storage, and other essentials.

6. Communication Plan — customer notification strategy and clear channels to update stakeholders.

7. Review and update regularly — test your plan and refresh it at least once a year.

How BCP Supports Insurance and Risk Management

Continuity planning and insurance work hand in hand:

• Commercial Vehicle and Courier Insurance: covers costs from accidents or breakdowns, while a BCP sets out measures such as arranging replacement vehicles or drivers to keep deliveries moving.

• Media Cover: covers equipment, but also liability in productions.  While it may not be required, a BCP shows preparedness, supports smoother claims, and reassures clients.

• Cyber Liability Insurance: covers costs from cyberattacks and data breaches. A strong BCP details how your business will respond and recover, limiting losses and speeding up claims.

 

Legal Obligations and Impacts

Directors have a duty under Companies Act 2006 Section 174 to exercise reasonable care and skill. This includes taking steps to reduce risks, which covers business continuity planning. Even without a legal requirement, failing to manage risks can lead to legal action, financial loss, and reputational harm. A continuity plan also supports compliance with health and safety, data protection, employment law, and contracts.

While most clients won't ask to see your BCP, larger customers, regulators, insurers, or partners may want evidence of one. For SMEs, the main value is internal: peace of mind, smoother claims, and staff preparedness. Insurers and clients view businesses with a BCP as lower risk and more trustworthy.

Getting Started

Many SMEs delay creating a BCP because it feels too complex. There are now simple online tools to help, including a free generator that can produce a tailored plan in minutes: https://wisteriasecurity.co.uk

Next Steps

A good BCP, supported by the right insurance cover, provides resilience and peace of mind. If you would like to review your insurance, whether cyber liability, commercial vehicle, courier and haulage, or media cover, our team at Ratcliffes Insurance Brokers is here to help. Contact Ratcliffes Insurance Brokers today.