One in 20 SMEs have no insurance
Recent research by LV= has indicated that up to 200,000 SMEs are trading in the UK without insurance, and a further 15% have no financial contingency plan in place should they be unable to trade.
The study further revealed that 38% of SMEs said they saw no need for taking out an insurance policy with the reasons for not having insurance included being not seeing a need for cover (38%), affordability of cover (21%) and ploughing all profits back into the business (10%).
Shocked at the findings, Alan & Thomas CEO Julian Boughton said: "This research shows that thousands of SMEs are leaving themselves vulnerable to prosecutions and fines by the Health and Safety Executive for not having appropriate insurance in place".
"Getting the right advice on insurance cover from an insurance broker that specialises in their sector is invaluable for business owners and can often make the difference between being able to continue trading or not, should the worst happen."
The research comes at a time when the SME sector has a promising future in the UK, with 75% of SMEs maintaining or growing turnover over 2014. Furthermore, more than a fifth of SMEs included in the study had taken on more staff during 2014, with 4% employing their first member of staff.
For information and advice regarding insurance cover for your business, please call our specialist advisers on 01202 754900.