Company insurance news - Businesses must get cover for public sector contracts

Companies must consider upgrading and increasing their business insurance to meet cover requirements demanded by central and local government.

Once properly insured, the prospects for firms are favourable because ministers have authorised significant budgets be made available for private enterprise to support the economy.

As part of that initiative, the British government has pledged to help small and medium-sized firms (SMEs) by committing to spend 30% of all government spending on this business sector, equivalent to an annual budget of £50 million.

SMEs may have thought public sector contracts were out of reach in the past - but not anymore.

It is straightforward now to find government and council work. Simply register online at Supply2, the "official government lower-value contract opportunity portal" to access many contracts worth up to £100,000.

Most government organisations and bodies demand high levels of commercial insurance cover from firms that apply and bid for public sector contracts.

Sufficient public liability insurance is a critical essential for suppliers to the government, quangos, councils and connected organisations across the UK.

Mark Chapman, business correspondent for the Warrings insurance company, said it was important for companies to be properly insured before entering the procurement process.

"Public sector contracts can be a significant revenue stream for any firm - but make sure you have adequate business insurance," he said.