Twice a year Aviva carries out an SME Pulse survey with small and medium enterprises (SME) in the UK. The latest survey of 500 SME has revealed that the number of businesses operating without insurance has increased in the last 6 months.
The figures revealed that in June there were just 8% without insurance, but that went up to 20% in December. In addition it was found that 29% of the businesses with insurance were not certain that they had the right policy.
The Commercial Product Manager of Aviva, David Bruce, said that businesses know about the importance of keeping their staff motivated, keeping a healthy cash flow, and minimising unnecessary costs, but something that is often underestimated is the importance of having the correct insurance that will protect the business.
In fact, in some cases insurance is a legal requirement. 47% of SME surveyed had employees and 10% of these companies did not have insurance. Not having employers liability insurance can lead to a heavy fine, so they must be careful.
The problem often comes when companies need to make a claim only to find that their cover is not adequate for what they want to claim. This is a disaster for anyone, and if you are not certain that your company is covered then you must speak to your insurance broker. They will be able to advise you on what is and isn’t covered currently, and how to protect you.
43% of SME said that they had found 2011 tougher than they had expected and were not expecting any improvement in 2012. 35% feared a double dip recession, which is up from 28% in the last survey. Further, only 19% felt that the government had been effective in its commitment to cut red tape. Hopefully the reality will be better than the expectations.