Well over a third of small enterprises in the West Midlands are putting their business, employees and customers at unnecessary risk by operating without any business insurance, according to new research from Coventry-based Insurantz.com.
The nationwide survey of businesses employing up to 50 people, carried out by OnePoll, found that those in the West Midlands are the least likely to have insurance in the UK, and 40 per cent of those companies that do had little to no idea of the extent of their cover.
Of particular concern is the revelation that 40 per cent of small businesses in the West Midlands – 10 per cent higher than the national average – could face legal action as they were unaware that temporary workers and sub-contractors must be covered under statutory Employers’ Liability insurance.
They risk fines of up to £2,500 a day by failing to provide cover. Last year there were more than 105,000 Employer’s Liability personal injury claims.
The failure to adequately insure can be linked to red tape which causes small businesses to spend hours each week filling in forms.
Nearly half of British entrepreneurs say their accountant is the first port of call for advice about funding and expansion, according to separate research.
The Small Business Finance Barometer ranks accountants ahead of bank managers, other business owners, solicitors and business angels.