Business insurance

Insurance increases your business overheads but is absolutely essential - indeed, some insurance is compulsory (such as employers' liability and motor), but it makes sense to cover yourself against other contingencies (such as theft or fire). It is very tempting to reduce the costs to the bare minimum by under-insuring, but this can be a mistake since should the worst happen, your business could be left without vital resources.

Hot topic

A survey by the Association of British Insurers (ABI) has found that businesses are improving the way they manage workplace risks, which in turn is leading to a slowdown in increases for liability premiums compared with previous years. Employers' liability premiums rose by an average 7% during 2004, and public liability and professional indemnity premiums climbed by an average 4%. The ABI says these rises relate to growing numbers of personal injury claims.