More than a third of small and medium-sized businesses have cut their level of insurance cover during the recession, according to a new survey.
A poll of 504 small business owners found that 38% have cut their level of insurance cover as a result of the current economic conditions.
The research by price comparison site Coverzones also found that 13% of respondents lack adequate insurance cover for their business, with 26% covered for ‘every eventuality’ and a further 26% claiming to only have cover for what is legally required.
Simon Ball, CEO Coverzones, said: “The reality is that commercial insurance always comes down to a traditional risk versus cost argument, but the financial turbulence of the economy has meant that for many businesses cutting cost has become more of a priority.
“Unfortunately, litigation against businesses is expected to rise due to the recession so, now more than ever, it is essential that they realise the importance of maintaining adequate cover.
“With the current economic pressures some business owners have been ‘trimming down’ their cover to make savings. If misfortune were to strike, many businesses could be at risk.”
© Crimson Business 2009
