Business insurance 'is a necessity'

News Article - 14 August 2008
Category:

Small and medium-sized enterprises (SMEs) that are looking to control costs still need to ensure they have the legally required level of business insurance, Business Link has warned.

Chris Simpson, account manager at the government's business support service, said companies should take out what is required by law and then look at other types of insurance, bearing in mind what the effect would be on their firm's productivity if something went wrong and they did not have that cover.

He added: "At the end of the day, insurance is there for a reason."

Recent research by Premierline Direct found SMEs are leaving themselves open to losses and legal claims amounting to more than £3 billion by failing to get the right level of business insurance.

It revealed nearly a third of company owners do not have any business insurance and less than one in six has business interruption cover which protects a firm against an incident that results in loss of income.

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