Are you skimping on your insurance?

Twenty percent of small and medium sized enterprises are trading without insurance, according to a recent survey by insurance company Aviva. Aviva’s Small and Medium Enterprise Pulse survey showed a 12% increase in the number of small and medium sized businesses without insurance over the last year. It was also found that 29% of all small to medium sized enterprises were not sure if they have the correct policy.

David Bruce, commercial product manager at Aviva, said: ‘Businesses know the importance of maintaining a healthy cash flow, keeping staff motivated and limiting unnecessary costs to a minimum but it is also really important for SME owners to be aware of the significance of having the right insurance to protect their business.’

The fact that some of these companies are not satisfying legal requirements makes this survey even more worrying as employer’s liability insurance is compulsory for all businesses with on or more employees. Almost half of all those questioned said 2011 was a tougher year than expected and Mr Bruce believes the atmosphere is still a pessimistic one. He said, ‘The mood continues to be down-beat about the economy as 2012 begins. Businesses are struggling against a backdrop of consumer spending cuts and many don't envisage an improvement to the situation in the next six months.’

If you want to know more about what kind of insurance your business needs take a look at our guides or read our quick review of types of business insurance. If you need a quote, our advisors will make sure you have the right insurance with the right level of cover for your business at the most competitive price on the market.

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