We work with many businesses when they need to make an insurance claim, and appropriate cover can make the difference between continuing to trade or going out of business. So it wasn’t good to read recently that the majority of the country’s smaller businesses are underinsured and half a million may actually be breaking the law because they have inadequate cover.
AXA Business Insurance has reported that over half of those who are legally obliged to take out employers’ liability cover have failed to do so. Almost half (43 per cent) of those who meet with the public, clients or suppliers haven’t protected themselves against accidents or damage. Forty per cent don’t have the right insurance if they use their car or van for business purposes, while half of consultants don’t have appropriate professional indemnity cover.
According to recent reports, SMEs are the fastest growing part of the UK economy, but it can be very tempting to cut costs by stinting on insurance cover. So our advice to any small business is to ensure you have adequate and appropriate cover: it could make the difference between survival and failure.