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SMEs: do you keep track of your insurance?

SMEs: do you keep track of your insurance?

Category: Business

Updated: 02/03/2015
First Published: 02/03/2015

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Having the right insurance is a vital part of any business, but unfortunately, not all companies are on the ball when it comes to keeping track of things. In fact, a worrying proportion of business owners have never read their whole insurance policy, and that could put their finances in jeopardy should the worst happen.

Lack of precaution

The research, carried out for the British Insurance Brokers' Association (BIBA), found that leaders of small and medium-sized enterprises (SMEs) don't always read their insurance documents, with 29% admitting that they never read the entire policy. In fact, just 19% always read their entire insurance policy, while 47% stick to reading the insurance policy summary – but 8% never even do that.

This isn't just the case with insurance documentation, either. Of those surveyed, just 26% of SME leaders always read their business bank account terms and conditions, while only 23% read their hire car contract. These are worrying figures, as they indicate that business owners may not be suitably on top of their finances, with this lack of preparation potentially having long-term consequences.

Be organised

"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," said Steve White, chief executive of BIBA. The figures suggest that many don't, and this is something that needs to change.

It's vital to stay on top of things, particularly when a livelihood is on the line, and business owners need to view this kind of documentation as being just as important as anything else. Insurance policies will always differ from provider to provider, as will business bank accounts, so being fully aware of the terms and conditions is essential for ensuring that everything is suitably covered. Start the process by finding the right financial solution for your business needs, and don't forget to read the small print!

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.