Rules and regulations have led to dramatically increased risks for the UK’s 4.5 million small businesses.  That was the feedback from 62 per cent of SME owners, according to research by Coverzones, which polled the views of 504 small business owners.

Small business owners in the UK are at risk because of greater insurance requirements. The current economic conditions and increasing litigation and red tape has meant that more than a third of small businesses have cut their level of insurance cover.
It is estimated that 4.5 million small businesses are at risk, according to new research released today. The research concludes that 13 percent of SME’s lack the correct insurance cover for their business. This is despite their business placing them in a high risk situation where they could be face fines of £2,500 per day.
Small business owners are at risk with only 26 percent having the correct small business insurance. A further quarter claim only to have cover only for what is legally required.
More worrying is the fact that small businesses feel that they don’t have time to conduct the required level of research into their insurance policy. Finding the correct insurance policy for a business is essential. Out of the 59 percent of small businesses who think they are not getting enough value out of their insurance policy, an alarming 91 percent claim this is because they are unable to spend enough time to comparing other deals and policies in order to find the right deal for their business.
The report highlighted the growing need for business insurance advice. While there are a number of different sites to compare personal insurance policy there is a distinct lack of options to compare small business insurance policies. Generally, most companies still tend to rely on brokers to find the right deal.