Being in business is all about managing risks. Most owners concentrate on market risks because they are controllable to some extent, and results can be more immediate in the form of increased turnover and profit. But unfortunately a high percentage of business owners do not protect themselves adequately from the risks they have no control over.

A recent survey found that of 1000 SMEs surveyed, 26 per cent did not have any general insurance. Sole traders were the most underinsured with 40 per cent taking out no general insurance.

One of the main reasons given by small businesses for failing to take out general insurance was the cost. Unfortunately by not taking out this insurance, those small business owners are risking the end of their business if something outside their control occurs.

The problem of affordability is a very real one.

If there is one insurance that is often overlooked but vital for business owners, it is income protection. Sole traders that do not have it run the risk of losing their business if they are unable to work for a long period of time due to illness or accident.

The amount of income protection insurance that can be taken out depends on how much income a sole trader is making

In the end it is important to recognise what the types of insurances your business needs and to find ways of funding them.