Small and medium businesses at risk for not having the right insurance

New research by Premierline Direct shows that SMEs are potentially at risk to losses and legal expenses claims to the tune of £3 billion by not having the right business insurance in place.

Of those questioned for the survey 30 per cent admitted to not having any type of business insurance. And those that do aren’t covered for the essentials that will protect a small business from the financial loss of a claim or interruption.

Only 34 per cent have employer’s liability insurance, a compulsory insurance for any company who has employees. Those with employees but without insurance are breaking the law and running the risk of incurring large fines, £2,500 per day that insurance is not in place.

Also less than one in 6 have business interruption cover to keep the money rolling in should your business have to suspend trading for a set period of time

Legal protection has only been taken up by 17 per cent, a risk not worth taking when you consider that the cost of defending the average employment tribunal case is £9,000 just in fees.

Only 40 per cent of SMEs re-value their assets every 12 months meaning the majority could be at risk of being underinsured and not getting the full value of the item they need to replace in the event of a claim.

With half of SMEs failing due to cash-flow problems business insurance covers for the unexpected events and costs that would turn a successful business into one that crashes and burns.

Here at Lowerpremium.co.uk you can get a comparative business insurance quote quickly and simply to make sure that your business has the cover it needs.

July 25^th 2008

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