2014 may have been a great year for SMEs however the latest statistics indicate that hundreds of thousands of businesses aren’t covered by employer’s liability insurance. Considering that insurance is one of the key weapons that protects a business from financial ruin, it should be at the top of the priority list of any manager. Yet according to the latest research from LV=Broker, an alarmingly high number of SMEs fail to take out comprehensive policies.
As part of an independent study analysts revealed that 230,000 British businesses don’t have adequate insurance plans in place. This leaves equipment, employees and customers vulnerable to a wide range of incidents including fines, liability claims, prosecution and more. Furthermore, a huge 350,000 SMEs ignore the need for employer’s liability insurance, despite the fact that it is a legal requirement.
Mike Crane, LV=Broker commercial lines director maintains that the figures are extremely worrying and indicate “that thousands of small businesses are leaving themselves vulnerable to financial ruin by not taking out appropriate insurance cover, particularly those employing staff who are risking daily fines of £2,500.”
So why is employer’s liability so important? First and foremost it offers employees complete support in the case of workplace accidents or injuries. It also ensures that businesses aren’t crippled in the case of any compensation claims.
“In addition, in today’s culture where compensation claims are rife, SMEs need to protect themselves as they could find themselves thousands of pounds out of pocket,” explains Crane.
General business insurance is also essential to getting SMEs back on their feet after falling victim to unexpected incidents. This can be anything from natural disasters to malicious vandalism.
Crane said, “And, as we’ve seen in recent times, with the riots and freezing winters, causing thousands of floods to commercial premises, there are many very real risks to SMEs which could prevent them from trading and being insured for business interruption can be the make or break for a small business.”
Regardless of the industry, employer’s liability insurance is an absolute essential. For businesses concerned with the cost it always pays to head to a quote compare website which will actively search the web for the best deals on employer’s liability insurance. Businesses owners can then enjoy the complete peace of mind that no matter what happens, their investment is 100% protected.