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Build relationships
If you haven’ t already, start building relationships with key stakeholders. These include contractors, contracting authorities( such as government agencies or councils) and other SMEs, all of which can help with business opportunities. Although the act aims to make it easier for SMEs to access these contracts, fostering collaborations could prove invaluable.
Develop your company’ s public image
If you are an SME owner, now is the time to focus on developing your business’ public image to position your company as strongly as possible in the eyes of public sector buyers. Ensuring your business’ financial credit score is in good health and all accounts are up-to-date with Companies House is a good starting point.
• Operational confidence: With appropriate insurance in place, SMEs can operate with peace of mind, knowing they are financially protected if something unexpected were to happen.
What types of insurance can support your business in the procurement process?
Public Liability Insurance
Many government contracts require SMEs to have adequate public liability insurance. This type of insurance can protect businesses in the event they are held liable for injury caused to a third-party, or property damage, during the performance of a contract.
Professional indemnity insurance
Rob Rees, Divisional Director of Markel Direct
It’ s important to also consider what the goals are of the contracts you will tender for, and to start investing in areas that could be viewed as favourable to these buyers before the act comes into full force. This could include certifications or frameworks such as:
• ISO 14001( Environmental Management): Shows a commitment to environmental responsibility
• Cyber Essentials or Cyber Essentials Plus: A UK government-backed certification that ensures basic cybersecurity measures are in place
• SSIP( Safety Schemes in Procurement): A certification demonstrating compliance with health and safety standards required in many public sector projects
• Carbon Trust Standard: Certification for demonstrating actions in measuring, managing and reducing carbon emissions
Have the right insurance in place
Having the right insurance in place for your business can help with a number of aspects of submitting a bid in a competitive tender:
• Bid eligibility: Insurance can help ensure that SMEs meet the necessary criteria to qualify for government contracts by fulfilling legal and contractual obligations
• Risk management: Insurance can provide protection against financial losses from accidents, errors or disruptions that may occur during the contract term, helping to safeguard business operations
Government contracts often involve significant sums of money, and mistakes can have serious financial consequences. Professional indemnity insurance can mitigate this risk by protecting businesses from allegations of professional negligence. If the contracts you tender for will involve providing designs, advice or professional services, it’ s likely that the contracting authority will have a requirement for your business to hold a minimum level of professional indemnity insurance cover.
Product liability insurance
For SMEs supplying goods as part of a government contract, product liability insurance can be crucial. It can protect businesses from claims related to defects in the products supplied and more. This type of insurance is generally considered essential cover when bidding for contracts involving manufacturing or distribution.
Cyberinsurance
Public sector contracts often involve handling sensitive data, which increases the risk of breaches, cyberattacks and data loss. Cyberinsurance can offer financial protection against cyber-related incidents and demonstrates that SMEs have strong risk management in place, providing reassurance to contracting authorities. If you’ re a policyholder with Markel Direct, you’ ll have access to a cyber response helpline and we’ ll cover agreed associated costs of the public relations response service following a crisis. x www. intelligentcxo. com
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