26 Jul Business Insurance Survey Shows Sole Traders Taking Risk
Business Insurance Survey Shows Sole Traders Taking Risk
Tradesperson business insurance is essential to any trade outfit, large or small, that wishes to both protect and promote its interests.
However, a new piece of research has found that around one in every three self-employed tradespeople has no form of business insurance at all.
This shocking statistic means that the future of many small businesses and sole traders could be jeopardised by even the most basic insurance risks.
Fortunately, around seven in ten of those surveyed do at least have some form of business insurance cover, with public liability insurance the most popular policy (64%).
Interestingly, the higher a business’s turnover, the more likely it is that its owner has some form of cover – 95% or traders earning over £50k had cover – while only 63% of those earning under £50k had cover.
Furthermore, the survey identified the key reasons why one in three traders choose to go unprotected. These include the following:
- I don’t need it – 53% gave this reason.
- It’s too expensive – 25%
- I haven’t thought about it – 18%
- I’m in the process of trying to obtain cover – 8%
- I can’t find the right policy – 1%
- I’m “self-insured” – 1%
- Other reasons – 5%
The Tredstone view
All business, including sole traders and the self-employed, should have adequate business insurance cover in place, not only to protect workers and members of the public but also the businesses themselves.
If an accident or other unforeseen event occurs, business owners may very quickly find themselves out-of-pocket or find that their businesses are at risk of financial ruin.
In fact, many business owners may find that they are personally liable for costs caused by inadequate insurance cover, while HMRC and other parties may fine businesses if they fail to meet their basic insurance obligations.