Taking out employer’s liability insurance is a critical part of running a safe and responsible business. Yet the latest statistics from LV= Broker revealed that a huge 80,000 SMEs haven’t armed themselves with this critical policy. Furthermore, the report also found that 200,000 SMEs operate with zero insurance altogether.
The shocking figures are extremely alarming and could have serious consequences for those responsible. Without liability insurance employers leave themselves vulnerable to fines of up to £2,500 per day, as well as a severely tarnished public reputation.
Mike Crane, commercial lines director at LV= Broker, said: “SMEs are the lifeblood of the British economy and it’s great to see that so many have increased their turnover in the past year and taken on more staff. However the research shows that thousands are leaving themselves vulnerable to prosecutions and fines for not having appropriate insurance in place.”
A litigious nation
With 62% of UK workers maintaining that they wouldn’t hesitate to make a claim against an employer is they encountered an accident or injury in the workplace, liability insurance is absolutely essential. The UK workforce knows its rights and businesses that fail to protect themselves with liability insurance could be forced to cover the costs of employee expenses out of their own pockets. If the accident or injury is serious this can very quickly lead to bankruptcy and financial ruin.
Disappointing statistics despite a recovering economy
While in the midst of the credit crunch employers could use dwindling profits as a feeble justification for not having insurance the recovering economy blows this excuse out the water. The report confirmed that 75% of SMEs have improved or retained profit margins over the past 12 months, with 25% planning on hiring new staff in 2015. Protecting a business with liability insurance should be high on the priority list of any employer that wants to ensure ongoing success. This is particularly important for businesses with expanding workforces, as an increase in employees means an increase in the risk of on-site incidents.
“Getting the right advice on cover from a specialist insurance broker is invaluable for business owners and can make the difference between being able to continue trading or not should the worst happen,” adds Crane.
If you run a SME don’t take the risk. Head to a quote compare website, find the best deal on employer’s liability insurance and enjoy the complete peace of mind that your livelihood is 100% protected every step of the way.