Back to Basics: The right insurance
Time and money are precious commodities for most, and for small business owners this is especially true. Running a business, particularly in its early days, can be a stressful, time-consuming and expensive affair as you struggle to get it off the ground and make a success of things.
Recent research from Lloyds TSB Insurance suggests that many small operators, possibly in an attempt to save money in the short term, are skimping on business insurance, and as a result are not covered against losses - a problem that was highlighted this summer as many pubs succumbed to floods.
The study revealed that almost half (44 per cent) don't even know how much their own businesses are worth - and that many do not see insurance cover as a priority.
It's likely that a fair number of pubs are counted among these figures. According to the Lloyds TSB survey, a worryingly high number of restaurants - four in 10 - do not have cover for fire damage.
Obviously this kind of oversight could be disastrous for a business. And it could even land you in legal trouble.
The bank's research confirms concerns that sprang from a survey last year commissioned by energy supplier British Gas Business. It revealed that as many as three-quarters of the UK's small businesses do not have an employer's liability policy in place - something that's required by law.
The penalty is a fine of up to £2,500 a day - a figure that would cripple most pubs.
Yet, while having no cover at all can pose huge risks to a small business, the task of choosing the right cover from among all the possibilities out there can also be problematic. So, how should a small business owner set about finding cover to suit their needs?
Lloyds TSB Insurance has set out matters for consideration when researching the most apt insurance for your particular business (see Top Tips box, below). It also offers a 24-hour helpline for business advice. For further information, visit www.lloydstsbbusinessinsurance.co.uk or call 0800 068 1591.
