Insurance proving to be a risky business

Posted June 27, 2006

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Over one million small to medium size businesses in the UK are facing serious risk for not having proper business insurance cover according to research carried out by Lloyds TSB Insurance.

One in four self employed business people are not adequately insured, with one man bands being the most likely not to have the right business cover.

The survey also revealed that a third of SMEs have admitted that when starting-up a business, business insurance is the lowest priority, with company name and location taking priority.

Even for those SMEs that are covered, only half of small businesses are fully covered by the right insurance.

Richard Mulholland at Lloyds TSB Insurance, says, “These findings are a cause for concern and it gives a very clear picture of where priorities lie. This nonchalant attitude to business insurance means that more and more SMEs are putting themselves at unnecessary risk jeopardising their most valuable & important assets.”

Lloyds have also launched a free guide to advise SMEs of the risks involved in setting up businesses - you can download it here (PDF Document).