Insurance gap in SME sector ‘could be disastrous’ – Suited Insure

A third of small business owners are not adequately insured despite there being over four million self-employed and freelance workers in the UK, new research from Suited Insure has revealed.

In a statement released last week (23 June 2023), the insurtech said that 24% of self-employed people had no insurance, while 7% stated they did not know they could be insured.

A further 8% said they had some cover, but no professional indemnity (PI) insurance or a public liability policy.

“There are millions of small business owners in the UK and the sector is the lifeblood of the economy,” said Suited Insure founder and director Jana Kejvalova.

However, the insurance gap in the SME sector “could be disastrous for them if something goes wrong and they end up being sued”, she added.

For example, if an individual was injured on a business’ premises.

‘On a mission’

Suited Insure further highlighted that sole traders could be at most risk due to underinsurance as they ”could end up losing everything they have – including their homes if sued by a disgruntled customer”.

Hairdressers, personal trainers, bookkeepers and business consultants were also at risk, the firm said.

“People like bookkeepers and accountants need to be insured in case they made an error which caused a client to under or over pay their tax bill,” Kejvalova explained.

”Hairdressers need to be insured in case they accidentally snip a customer’s ear and personal trainers must be insured in case their advice led to a client suffering an injury.

“That’s why we are encouraging all self-employed people to make sure they have the cover they need just in case the worst happens.

“It is far better to insure against it happening ahead of the event than to have to pick up the pieces afterwards.”