Most pubs uninsured

Three out of four pubs and other small businesses risk fines of up to £2,500 a day because they don't have the right insurance.

That is the stark warning from British Gas Business, which says millions of small firms do not have the compulsory Employers' Liability Cover in place.

The financial implications of not having compulsory policies in place are also astronomical​Neale PhillipsBritish Gas Business

British Gas Business also said half of small businesses are under-insured for the commercial activity they undertake, leaving them exposed to financial losses and lawsuits.

"The recent summer floods have resulted in £3 billion of claims from 50,000 businesses - many of them smaller businesses," ​said Neale Phillips, head of insurance at British Gas Business.

"Events such as these can interrupt trade for weeks but inadequate insurance could spell the end of any small organisation.​

"The financial implications of not having compulsory policies in place are also astronomical. I urge all small firms to check their insurance requirements today."

The warning from British Gas Business comes as it launches a dedicated online business insurance comparison service for small firms called Insurance-for-Business.

Phillips said: "Unlike the personal insurance market, where internet searching has been truly embraced as it keeps the customer firmly in control, this simply hasn't happened in the business insurance market.​

"Until now, small firms have been reliant on finding and trusting a reliable broker but the high levels of under-insurance indicate that this traditional model alone is no longer viable.

"Brokers don't have the capacity to shop around on behalf of their smaller customers and are very often less focused on the smaller end of the market.

"A dedicated online business insurance comparison service will put small business back in control of their policy requirements, while giving them the bespoke support that they deserve."

The supplier said the service provides a fast, easy route to a wide choice of business insurance from major insurers including AXA, Zurich and Norwich Union.

It offers instant cover for public and employers' liability, professional indemnity and more.

See www.insurance-for-business.co.uk​ for more information.