Don’t cut corners on business insurance, says Lloyds

While it may be tempting to reduce costs however you can in light of the current bleak economic landscape, Lloyds TSB Insurance has cautioned small businesses in the UK that are just starting out to not cut corners on their business insurance.

More and more Brits have decided to start up their own firms in the wake of the economic recession, says the commercial insurance provider.  Lloyds maintained that many people had begun to contemplate their career aspirations following the global financial crisis, which led to increases in the number of SMEs starting up along the length and breadth of the UK.

Lloyds TSB Insurance commercial business insurance head, Stuart Curtis, stated that new businesses should resist the temptation to cut corners on their professional indemnity insurance in an effort to save money.  However, Mr Curtis tempered his words by saying that the newly renewed entrepreneurial spirit in the UK is a welcome thing.

The head of Lloyd’s commercial insurance business remarked that the new crop of UK entrepreneurs need to make sure they’re not caught with their pants down whilst trying to control costs.  Moreover, business owners need to ensure that their equipment, stock, and property have adequate insurance cover as well, he added.

One trend that has been increasing lately has been home business set ups, the Lloyds spokesman said.  More than 25 per cent of the total number of new start ups launched in 2010 alone, he remarked, adding that entrepreneurs have been fast to recognise the many perks of being their own boss and not having to commute from working within the comfort of their own homes.

Despite this, Mr Curtis warned that many entrepreneurs are neglecting to see the new risks that they risk exposure to and do not have proper insurance cover against.

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