Small business owners are leaving themselves open to legal action by failing to take out insurance against internet attacks, according to a study by Hiscox.
The research found that only 16% of small business owners that had bought some form of business insurance had taken out internet and email insurance, which protects owners from being taken to court by those who had suffered as a result of internet fraud, breach of privacy or virus transmission.
"If the ‘slip and trip' was one of the main sources of old-fashioned liability claims against businesses, then the rapid growth of the internet could see it replaced by the ‘click and trip' liabilities of doing business online," warned Gary Head, UK underwriting director at Hiscox.
"Legal suits for defamation, breaches of privacy or fraud can literally be one ill-advised click away and small business entrepreneurs must not underestimate the threat to their hard-earned business."
Directors' and officers' insurance - which protects owners against allegations of health and safety breaches or discrimination claims - was similarly unpopular, despite the growing trend towards holding business owners directly responsible for their firm's failings.
Only 22% of the small businesses that had taken out insurance had taken out this kind of policy.
The most common types of insurance taken out by small business owners were public liability (used by 77% of respondents) and office contents (70%). These were followed by professional indemnity (65%), employers' liability (65%), office buildings (55%) and personal accident cover (44%).
The most popular method of buying insurance remains through a broker, either face-to-face or over the phone (52%), the research found. But 22% said they bought their policies online, either using a broker or direct with an insurer.
