The vast majority of small and medium sized businesses in Britain do not have sufficient business insurance a new report has claimed.
A business insurance provider has revealed that most people in the business community believed that most small businesses were overlooking the range of small business insurance policies and putting themselves at risk.

“When starting a business, particularly if you are starting in a new industry or profession, insurance is the one of the easiest things to forget,” said a spokesperson. “The extra burden of cost an insurance policy puts on a business can be off-putting, and it can seem unnecessary in the early stages.”

“But insurance is essential to maximise the success of a businesses”, she continued, “because without the appropriate protection in place some tradespeople or professionals would be turned down for work, which could be pivotal when a small business is trying to get off the ground.”

According to the spokesperson self-employed people are especially vulnerable to being uninsured. These include people such as, consultants or tutors along with photographers and musicians. All of these people would be advised to consider taking out professional indemnity insurance, yet few do.

Professional indemnity insurance would protect professionals from situations where they could be accused of negligence, such as providing bad advice or making a serious mistake which could result in legal claims for compensation.

Compensation claims can “seriously cripple or even close down” a small or medium sixed business if professional indemnity insurance is not in place, the spokeswoman warned