Nearly two thirds (64%) of sole traders and small businesses in the UK don't have Professional Indemnity Insurance, according to constructaquote.com.
The study found that those working as building contractors, engineers and estate agents are the top culprits.
When asked why they didn't yet have the insurance, respondents stated 'I don't feel as though I'll ever require it' (39%), 'I don't know enough about what the insurance policy would guarantee me' (33%) and 'I don't think I can find the budget to pay for it' (12%) as the top reasons why.
According to the poll, more than two fifths (41%) of the 36% who stated that 'yes' they did have the insurance, said they bought the insurance as a precaution', when asked how they had come to own. Other reasons given include 'We knew others who had been sued without it, and lost their business as a result' (35%) and 'A claim was previously made against my businesses and I needed to protect my assets' (17%).
Lyndon Wood, CEO of constructaquote.com, said: “We're shocked to hear just how many small business owners in the UK don't have this insurance; it's absurd. Those who say they haven't invested because they'll never require professional indemnity insurance are those who are most likely to one day be in a position to use it. Those who say they don't own it because they can't afford it should really do a little research – it's affordable, and business owners have the ability to pay in either monthly or annual instalments, depending on preference."