Small businesses gamble on no insurance (From The Northern Echo)

Small businesses gamble on no insurance

12:01am Monday 19th May 2008 in

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SMALL enterprises in the North-East could be at risk by gambling on operating without business insurance.

Almost a third of the regions small companies are said to be putting themselves, their employees and customers at unnecessary risk by opting not to take out business insurance.

Research commissioned by Insurantz.com, and carried out by polling specialists OnePoll revealed that should misfortune strike, up to 3,800 of the North-Easts 107,000 small enterprise owners could be risking their homes by operating without insurance while carrying personal guarantees against their business.

One in ten respondents in the region were said to be "unsure" whether they were insured and 29 per cent admitted having little or no idea what their policy covers.

George Derbyshire, chief executive of the National Federation of Enterprise Agencies, said: "Im shocked by the results of this survey.

"Running a business is all about risk-taking, but we would always advocate a managed and informed approach to risk.

"Sensible entrepreneurs discuss the issues with their advisers in the knowledge that getting this wrong can be disastrous in human, financial and legal terms."

He said that, "of particular concern" was the revelation that 31 per cent of the regions small businesses could face legal action as they were unaware that temporary workers and sub-contractors must be covered under statutory employers liability insurance.

They, therefore risk fines of up to £2,500 a day by failing to provide cover.

Last year there were said to be more than £105,000 such employer's liability personal injury claims.