A recent survey has revealed that over 50% of small to medium-sized enterprises (SMEs) in the UK are uninsured. Of those surveyed, a quarter of business owners said they had not considered business insurance, whilst three quarters said they felt their business was too small to be insured.
Here are five reasons we recommend business insurance to owners of SMEs:
1. Protecting your working environment
Putting the right level of Buildings and Contents Insurance for your business is essential. Whether you work from home, a garden building or commercial offices, it is important to insure your workspace against fire, flooding and other damage. It is also essential to insure your equipment against theft. Consider not only the cost of repairs, rebuilding and replacing, but also the potential loss of income incurred by any disruption.
2. Protecting against legal action
Professional Indemnity and Public Liability Insurance can protect you when things go wrong. If a business loses money or their reputation suffers as a result of using your services, or your actions, you could be presented with a liability claim. Similarly, if anyone is injured or their property is damaged due to your negligence, you could face expensive legal action against yourself or your employees.
3. Complying with the law
Even if you have just one employee, you are legally required to have Employer’s Liability Insurance. If a member of your team suffers an injury or an illness as a result of working for you, you could face the costs of legal action, as well as a financial non-compliance penalty for each day you were uninsured.
4. Attracting the best staff by providing generous life and health insurance
As an employee benefit, you can offer staff a highly attractive package which sets you apart from other employers in a similar field of business.
5. Honouring a contractual requirement
Check your contracts with customers – a lack of the correct insurance policy can sometimes invalidate a contract. Make sure you are properly covered.