FORTY percent of SMEs fail to buy the insurance they need to used their vehicles for business according to AXA Business Insurance.
If you use your own vehicle for business it must be insured for business use, even if it’s only used occasionally for business, and if the vehicle’s owner is the driver.
It’s part of a broader trend; there are 4.9 million SMEs in the UK and recent research carried out by Taylor McKenzie across 365 small businesses on AXA’s behalf suggests that the majority of them, probably in ignorance, are operating without appropriate insurance.
adding business cover to your motor insurance will only cost a few pounds per year
A whopping half a million SMEs are potentially breaking the law in the process.
In addition to the failure to insure vehicles, here’s how the numbers stack up.
> Over half (53%) of businesses that are legally required to have Employers’ Liability insurance don’t have it.
> 43% aren’t insured against any damage or accidents for which they may be responsible while with customers.
> 52% of businesses involved in giving professional advice don’t have indemnity cover.
> Of the SMEs who lack the financial resources to see them through an extended period when they can’t work (the majority), 75% don’t have any personal accident protection.
Darrell Sansom, MD of AXA Business Insurance says,
“We appreciate that generally, there is no intention to break the law or to put themselves and others at risk. Often it is a case of not knowing what’s needed, forgetting to do the admin or possibly worrying about the additional cost of insurance.
“But a little attention to detail could really mean a lot if you have to make a claim. The average cost of a liability or professional indemnity policy is about £17 a month. And adding business cover to your motor insurance will only cost a few pounds per year.”