Insurance warning for new small firms

Date: 6th June 2011

Small businesses just starting out in the UK have been told that cutting corners in order to save costs is not a good idea.

According to Lloyds TSB Insurance, an increasing number of Britons are starting up their own businesses in the post recession era.

The firm claimed the global financial crisis left many individuals contemplating their career aspirations and this, along with the desire to be one's own boss, has led to an increase in the number of small enterprises operating across the country.

Stuart Curtis, head of commercial business insurance at Lloyds TSB Insurance, said that while a strong entrepreneurial spirit currently in the UK is welcome, new businesses should not be tempted to cut corners to save money.

"This new breed of entrepreneurs needs to ensure they're not caught out when trying to cut costs and that their property, stock and equipment are adequately covered," he commented.

"Home-business set-ups are becoming an increasing trend with more than a quarter of the total number in the UK launching in the last year alone. Entrepreneurs are recognising the perks of becoming their own boss within the home, however many are failing to see the new risks that they are exposed to and do not have appropriate insurance cover."

Posted by Emily Smith