One in ten small businesses have no insurance

A new report from Aviva has highlighted the insurance risks that some businesses are taking due to the recession.

The survey saw over one in ten (12%) SMEs admitting that they don’t have any commercial insurance in place.

Aviva has warned that given that employers’ liability insurance is required by law, there is a risk that some companies could be trading illegally. With an estimated 4.7m SMEs in the UK, Aviva estimates that there could be around 560,000 businesses that are potentially at risk of being out of pocket should a disaster strike.

David Bruce, commercial product manager at Aviva, commented: “It is worrying to see how many businesses have admitted they have no insurance at all. If one of your staff, or a customer, has an accident at work it is unlikely you would be able to pay out a claim that could run into thousands of pounds yourself. Protecting what you’ve already got and what you’re trying to build for the future should be fundamental for any conscientious business owner.

“With 38% of all major accidents involving slips, trips and falls amounting to nearly 11,000 serious injuries in the workplace every year, it is important to take steps to safeguard yourself against a claim. Talk to your broker to make sure you have the right level of insurance for your particular business.”