Small businesses that take steps to implement risk management strategies should receive lower insurance premiums, according to a new campaign.

Document management company Diraq is currently lobbying members of the all-party Parliamentary group for small businesses to gain support for its proposals.

These would see insurance companies offer reduced premiums to businesses that have taken precautions for disasters, such as implementing alternative office arrangements, along the same lines as health insurers that offer people with healthy lifestyles reduced premiums.

"As technology advances, it becomes ever more feasible for businesses to implement effective data protection systems that will reduce the amount insurers will need to pay out in compensation for loss sustained when disasters happen," said Ron Chimes, managing director of Diraq.

"Business insurers need to modernise their policies and encourage businesses to prepare for catastrophes by rewarding those that are forward-thinking, taking steps to implement disaster recovery plans."