Tradesman Saver, a leading insurance provider for small businesses and tradespeople, has identified the top five risks that UK businesses are likely to face in 2023. As the economy continues to feel the impact of the pandemic, coupled with the rise of new technologies like artificial intelligence, businesses will need to adapt their strategies to stay successful.
- Cyber Incidents: The biggest risk for UK businesses remains cyber incidents such as IT outages, ransomware attacks, and data breaches. With geopolitical tensions increasing, the potential for large-scale cyber-attacks is growing. Companies are concerned about notification costs, penalties, fines, and reputational damage associated with data breaches. Small businesses are particularly vulnerable as they often have weaker security controls and fewer resources to deal with the aftermath of an attack.
- Business Interruption: Business interruption, including supply chain disruptions, is another significant risk for UK companies. Despite efforts to diversify business models and supply chains post-pandemic, disruptions persist. The recent turmoil in Ukraine and ongoing global supply chain issues, such as semiconductor shortages, are causing further strain on businesses.
- Macro-economic Developments: Macro-economic developments, including inflation, deflation, and monetary policies, have emerged as a new risk for 2023. The ongoing crises in the US, China, and Europe, coupled with the Russian invasion of Ukraine, have led to increasing energy prices and inflation. The UK is currently in a recession, with the economy expected to contract by 0.7% in 2023. However, some experts predict a return to growth during the second half of the year as inflation and energy prices begin to stabilise.
- Energy Crisis: The energy crisis is another new risk for 2023 that has impacted businesses. Energy prices have risen due to post-pandemic economic recovery, supply chain disruptions, and delayed maintenance work. The crisis has intensified with the invasion of Ukraine by Russia, the world’s largest exporter of fossil fuels. Although the UK relies on Russia for less than 4% of its total gas supply, it remains susceptible to fluctuating international gas prices.
- Shortage of Skilled Workforce: The shortage of skilled workforce is a risk for UK businesses due to the Covid-19 pandemic and rising wage inflation. Many countries, including the UK, are experiencing a reduced workforce and high demand for labor. The situation is further exacerbated by post-Brexit immigration rules. The construction industry is among the hardest hit, with 75% of contractors experiencing recruitment issues.
Protect Your Business with Public Liability Insurance Tradesman Saver is committed to helping businesses navigate these risks by providing tailored insurance solutions to protect against potential losses. Public liability insurance is essential for any business that interacts with customers or clients. It provides cover for third-party property damage or bodily injury claims that arise during the course of business. To learn more about how Tradesman Saver’s public liability insurance can support your business, visit our website https://www.tradesmansaver.co.uk/public-liability-insurance/ or call our helpline for more information.
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