TEES bosses reveal that they are confused by insurance policies, as new research showed many were putting their business at risk.

Market research firm Onepoll, suggests that one in ten small businesses in the North-east could not tell if they were insured while 29% said they had little or no idea what their insurance policy covered.

An estimated 3,800 of the region’s 107,000 small business owners operate without insurance and could risk losing their homes, which they have offered as personal guarantees against their business.

Chris Howitt, owner of CMH Joinery in Darlington, said insurance advisors should offer more help.

“Sometimes people are shocked when they file a claim and are told they are not getting the money they thought they were entitled to.

“We’re insured for up to £7m on public liability. If we didn’t have the correct level of cover, we wouldn’t get the work”.

However, Denis Pinnegar, business development director for BiB Insurance in Darlington, said companies needed to wise up.

He said, “You wouldn’t drive to work without a seat belt on. Businesses should take steps to ensure they have the appropriate insurance, which is a critical part of a company’s risk management portfolio.”

The survey results also show that one third of respondents found the process of arranging business insurance to be time-consuming and overly complicated.