A study has shown that only around 40% of businesses choose to purchase insurance during their first three years of trading, with many believing that their business will not need any kind of cover.
Research has shown that around two million people have taken the plunge and set up their own business over the last three years, and while this trend is set to continue, many are choosing to do so without taking into consideration the risks that they may face.
By the time most of these businesses reach their fourth year of operation, the number with insurance cover rises to 60%, but there are still many businesses that choose not to protect their operations. One of the biggest gaps is with employers’ liability insurance, which is designed to protect in the event of illnesses and workplace injuries. This is actually a legal requirement for businesses, and there are penalties for those who let this slip, but research suggests that only 41% of companies that require this insurance have a policy in place. As fines can be as much as £2,500 a day, it is a good idea to ensure that your business has employers’ liability insurance.
The most worrying thing about this situation is that many businesses are avoiding insurance, not because of the cost, but because they really are simply not aware of the scale of the potential risks that are involved when it is not in place. Nearly three-quarters of companies that don’t have insurance believe that their business is too small for it. Only 3% have just forgotten to put a policy in place.
Industry experts believe that the number of claims that will be made against small businesses will increase in terms of value and that a more varied range of businesses are set to be affected.
Click here to learn more about our Commercial Combined insurance solution.
To ensure you and your business has met all the necessary requirements, get in touch with us! Or click here to request a call back from a member of our expert team