FSB highlights importance of business insurance

The UK's Federation of Small Businesses (FSB) has noted the importance of business insurance for those looking to start their own business.

However, according to a representative from the organisation, while business insurance products are important, they are not essential and any decisions over the purchase of products should be based upon individual business needs.

"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," said the FSB representative.

"If it means that you don't have enough money to perform your business operations or get in enough stock then insurance might go by the wayside."

The organisation noted that businesses are only legally required to obtain employers' liability insurance should they decide to take on other members of staff.

Established in 1974, the organisation has a membership base of more than 205,000.