ePub: Insurance on the internet
News that three quarters of UK small businesses are breaking the law by not having the right insurance has prompted the launch of a website dedicated to helping them find the best value deals.
Research shows that millions of small businesses, including pubs, do not have employer's liability cover in place - compulsory under law. Most are also under-insured for their commercial activity, leaving them exposed to financial losses and lawsuits that could put the whole business at risk.
Now energy supplier British Gas Business has launched www.insurance-for-business.co.uk through which it aims to provide a fast and easy route to a wide choice of business insurance from trusted insurers including AXA, Zurich and Norwich Union.
The service offers instant cover for public and employers' liability, professional indemnity and more at the click of a button. British Gas Business will also automatically carry out the same search at renewal, saving small businesses valuable time.
"The recent summer floods have resulted in £3bn-worth of claims from 50,000 businesses - many of them smaller businesses," comments Neale Phillips, head of insurance at British Gas Business.
"Events such as these can interrupt trade for weeks but inadequate insurance could spell the end of any small organisation. The financial implications of not having compulsory policies in place are also astronomical. I urge all small firms to check their insurance requirements today."
Research reveals that most small firms want to purchase their business insurance over the internet but until now there has not been a bespoke service that meets their diverse requirements and only 15 per cent of SMEs - small and medium enterprises - currently buy online. It is in response to this growing frustration at the lack of flexible insurance solutions that the energy company has launched Insurance-for-Business.
"In the personal insurance market internet searching has been truly embraced as it keeps the customer firmly in control," explains Phillips. "But this simply hasn't happened in the business insurance market.
"Until now, small firms have been reliant on finding and trusting a reliable broker - but the high levels of under-insurance suggest this traditional model is no longer viable.
"Brokers don't have the capacity to shop around on behalf of their smaller customers and are very often less focused on the SME end of the market. A dedicated online business insurance comparison service will put small business back in control of their policy requirements, while giving them bespoke support."
