New research by LV= Broker has found that one in 20 small business owners have no insurance cover in place – equivalent to 230,000 businesses across the UK - leaving them vulnerable to liability claims, hefty fines and prosecution.
By law, all businesses employing staff must have employers’ liability (EL) insurance as a minimum otherwise they can be fined up to £2,500 a day by the Health and Safety Executive (HSE). Despite this, the research found that 350,000 small businesses that employ staff have no cover in place.
As well as being vulnerable to fines from the HSE, business owners could find themselves heavily out of pocket should one of their staff make a claim against them. According to LV= claims data, there has been an increase in the frequency of employer liability claims as more employees brings claims against their employers.
Another area giving cause for concern is public liability cover. Slips and trips can result in expensive compensation claims for business owners who are liable for any harm caused to a member of the public while on their premises. Analysis of LV= data shows that after claims for theft and damage caused by leaks, storms or accidental damage, public liability cases now make up the next largest proportion of claims. However, according to the research, over one in 20 (6%) small businesses have no public liability insurance in place.
For specialist personal injury claims advice in Scotland, including advice on claims for slips, trips or falls, contact us today: click here to make an online enquiry or call us on 0800 027 1480.
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