Lack of insurance in small business

by Richard Kilner

Story link: Lack of insurance in small business

New research commissioned by Insurantz.com has revealed that 29% of small businesses are eschewing business insurance.

The unexpected finding means that almost three in ten firms are exposing their customers, staff and business to unnecessary risk.

The UK has approximately 4.45m owners of small businesses, and as many as 156,000 of them could be risking their own homes through lack of insurance coupled with personal guarantees against their business.

OnePoll conducted the survey, which questioned small business owners from across the country.

Other findings included the surprising fact that 12% did not even know if they were insured or not, and that 30% were very unclear about what precisely was covered by their policy.

Although Britain’s enterprise has been rapidly rising recently, it is among new businesses that insurance is least considered.

Of new businesses, 32% have no insurance, with an additional 14% uncertain as to whether or not they do.

George Derbyshire, chief executive of the National Federation of Enterprise Agencies, has expressed his shock at the findings.

Worryingly, 30% of business owners are unaware that they need statutory Employers’ Liability insurance, which is necessary to cover sub-contractors and temporary workers.

The fine, per day, for lacking the insurance is £2,500.

The general insurance situation is not assisted by the bureaucracy involved.

A third of all business owners stated that insurance matters are overly time-consuming and complex.