23-12-2016

Here at Business Compare our knowledgeable team are always on hand to help you decide what insurance you need and to help you compare and save. However, not all SMEs receive such guidance. In fact, a study by AXA Business Insurance has found that the majority of SMEs lack appropriate cover.

There Are 4.9m SMEs in the UK - Many Without Proper Cover

The study questioned 365 small businesses and results found that:

• 53% of businesses that are legally required to have employer's liability insurance don't have it.
• 43% aren't insured against damage or accidents that occur while with customers that they are responsible for.
• 40% of SMEs lack the correct vehicle insurance.
• 52% of organisations that give professional advice don't have indemnity cover.
• 75% of SMEs don't have personal accident protection, despite not having the financial resources to get them through if they can't work.

A representative for the study has said::

"We appreciate that generally, there is no intention to break the law or to put themselves and others at risk. Often it is a case of not knowing what's needed, forgetting to do the admin or possibly worrying about the additional cost of insurance.

"But a little attention to detail could really mean a lot if you have to make a claim. The average cost of a liability or professional indemnity policy is about £17 a month. And adding business cover to your motor insurance will only cost a few pounds per year."

What Insurance Should SMEs Have?

Insurance requirements will vary depending on the nature of each business, but one thing that all SMEs have in common is that a lack of cover could destroy a business. Basic cover that the majority of businesses will take out include:

Buildings and content insurance - A policy to cover the cost of repairing or replacing damaged or stolen property.

Employers, public and products liability insurance - Cover should an employee or member of the public be negatively affected as a result of your business.

Professional indemnity insurance - Protection should you be accused of providing inadequate advice, guidance or services.

Legal expenses cover - Simply insurance to cover the costs of any legal work required as a result of a claim.

Business interruption insurance - Insurance to cover an income loss, often due to a disaster.

Vehicle insurance - Cover from all kinds of vehicles, from company cars to HGVs, vans to minibuses.

Compare Quotes and Get Covered

Whether you require public liability insurance or landlord cover, courier insurance or protection for your shop, don't risk it and become one of these statistics. Compare quotes online and protect your business in minutes here