Experts in the creative sectors in Shropshire are the most
likely to risk their business by putting off the purchase of vital
insurance protection.
Dave Williams, of Henshalls Insurance Brokers in Newport and
Shrewsbury, said research had shown that small businesses and
freelance consultants delayed arranging professional indemnity
cover for an average of six months after setting up.
The survey by PolicyBee showed 39 per cent of people questioned
did not purchase cover until at least three months after they had
been in business, and another 20 per cent waited two years or
more.
"The companies most at risk from delaying this purchase are
those involved with design, engineering or marketing and
communications," said Dave.
"In these more creative sectors, particularly in marketing and
design, these companies are putting themselves at higher risk if
they get involved in a client dispute."
Dave said professional indemnity insurance policies protected
businesses from the financial impact of claims related to a wide
range of issues including negligence, bad advice, loss of data, and
breach of copyright.
"Without this kind of cover, your business could face the kind
of claim that will threaten its very future and you may also have
to pay legal costs too. So it's vital that companies consider the
risks of delaying arranging PI cover and make it a priority
whenever you are starting out on a new venture."
Dave said the survey had shown that while creative sectors were
less keen to sign up to professional indemnity cover, accountants
proved the most keen to arrange a policy - 90 per cent buy cover
immediately, and the other 10 per cent arrange it within six
months.
"It's clear that it depends on what industry sector your
business is in as to what your attitude is likely to be regarding
this kind of policy.
"Companies in more regulated sectors such as accountancy and
consultancy are likely to purchase this insurance as soon as they
set up in business, but creative sectors should follow suit.
"The risks are too great to run a company without protection
against client disputes that really could put you out of business
altogether."
For more information about Henshalls, please visit their website
here: www.henshalls.com