Insurance 'not always essential' for business
Jun 06 2008
Taking out business insurance is 'not always essential' for start-up firms, a business trade body has explained.
A spokesperson for the Federation of Small Businesses (FSB) explains that employers' liability insurance is the only compulsory type of protection that fledgling firms are required to have.
He comments that it depends on a company's funds as to whether insurance or keeping money is seen as a higher priority.
The spokesperson says: 'In an ideal world as a business owner you would be insured against everything, but the practical, financial realities often take over and you have to balance those.'
If taking out insurance will mean that a company is unable to balance or grow because of a shortage of money, this will outweigh the benefits of having such protection, the FSB spokesman comments.
A poll released last month by Insurantz.com found that some 29 per cent of small firms have no insurance and around 12 per cent of firms were not sure whether or not they were covered.
A spokesperson for the Federation of Small Businesses (FSB) explains that employers' liability insurance is the only compulsory type of protection that fledgling firms are required to have.
He comments that it depends on a company's funds as to whether insurance or keeping money is seen as a higher priority.
The spokesperson says: 'In an ideal world as a business owner you would be insured against everything, but the practical, financial realities often take over and you have to balance those.'
If taking out insurance will mean that a company is unable to balance or grow because of a shortage of money, this will outweigh the benefits of having such protection, the FSB spokesman comments.
A poll released last month by Insurantz.com found that some 29 per cent of small firms have no insurance and around 12 per cent of firms were not sure whether or not they were covered.
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