A large number of small and medium sized enterprises (SMEs) in the UK are not keeping track of their business insurance policies, research has found.
According to the British Insurance Brokers' Association (BIBA), just 19 per cent of businesses always read their entire insurance policy, while 47 per cent stick to reading the insurance policy summary. This is despite the fact that a company's insurance policy can prove vital if something should go wrong.
For car dealers and garages, motor trade insurance provides an essential safety net in the case of something bad happening to the business. Whether it is a road risks insurance policy to cover a motor trader as they drive other people's cars out on the roads or a combined motor trade insurance policy to protect the vehicles and assets stored on site against damage or theft, these policies can be the difference between a business surviving or crumbling in the wake of a break-in, fire or bad accident, to name just a few examples.
Steve White, chief executive of BIBA, explained: "As SMEs are the backbone of the British economy, it is essential that their leaders are fully aware of the insurance cover that their business has." Yet the research suggests this is not the case.
Mr White added that insurance policies will always differ from provider to provider, so being fully aware of the terms and conditions is essential for ensuring that everything the business needs to be is suitably covered.