Small business owners open to crippling losses
Those who run their own business are leaving themselves open to massive, and potentially crippling, losses, according to a new study.
The research shows that almost one in three (30 per cent) of small business owners questioned did not have business insurance at all, while only 34 per cent have employer's liability cover and even fewer (one in six) have business interruption cover. The figures come from Premierline Direct research looking into how businesses protect themselves.
Managing director Chris Little said that while risk is a part of business, owners should try to cover themselves in case a risk doesn't work out how they'd hoped.
"With more than half of the UK's small businesses collapsing because of cash-flow problems, most small businesses can’t afford to take risks and business insurance is one area a company shouldn’t be operating without," he said.
The research suggests that the lack of insurance is placing small businesses at risk of losses and legal claims amounting to over £3 billion.
Small business owners and contractors should therefore seek advice on how best to structure their company's finances to cover risk.
