Liability insurance for businesses - Checking firms have the right level of cover

Most British small and medium-sized companies (SMEs) are risking their commercial viability by failing to acquire sufficient or adequate business insurance.

Compensation claims made against companies for liability issues - or repairs claims when inadequate buildings cover has been taken out - can force firms out of business.

Insurance costs can be disconcerting for people running a business, especially contractors and the self-employed. It is seemingly too easy to put the issue on one side but failing to take out the right level insurance could lead to the worst kinds of disaster.

For any business coming into contact with customers and other members of the general public, there is a risk of injury to people should an accident occur. In such incidents, sufficient public liability insurance cover can ensure any claim is met.

Mark Chapman, online insurance manager at Warrings, said, "It is important not to forget insuring your business especially if you are starting out and are concerned about the risk of being put out of business by problems that can arise."

A wide range of other insurance can protect businesses from potential bankruptcy or cash flow problems including employer's liability insurance, business interruption cover, property damage, and money and personal assault cover.