Only 26% of small business owners surveyed by AXA UK said they have business insurance, highlighting the vulnerability of smaller firms in the country.
The survey polled 500 small business (defined as having fewer than nine employees) owners in the UK. Geographically, the most insured businesses were in the south-east (43%), while Northern Ireland and the north-east had the fewest at 9% and 8%, respectively.
The survey also found that 40% have additional personal savings to protect them in case their business gets into financial difficulty, while 24% said they would ask family for money and 11% would ask friends.
In terms of emotional support, 44% of business owners said they rely mostly on their partner, while 19% said other entrepreneurs are the ones who can truly understand them.
Read more: Business insurance in the UK
“At AXA, we understand the challenges business owners face when starting up their own business, but we also know that having [the] right insurance policy will help business owners feel supported and give them peace of mind should the unplanned happen,” said Jon Walker, CEO of AXA Commercial. “These businesses are at [the] heart of Britain’s economy and contribute significantly to our society. Unfortunately, not all survive their first year, and with high setup costs, getting off the ground can be difficult. This is why we’re so pleased to be running AXA Startup Angel for the second consecutive year.”
The Startup Angel competition was launched by AXA UK this week. The competition will provide the two top winners with prizes of £25,000, mentorship from renowned British entrepreneurs, and 12 months of business insurance.