Small business owners are leaving themselves open to potentially huge bills because insurance, research shows.

Despite more than half of businesses questioned saying they were concerned at the growing blame culture, nearly one third of owners have no business insurance at all.

Only 34 per cent have employer’s liability cover, compulsory for all companies. Small firms are also underinsuring their assets, which could leave them unprotected in the event of a flood, for example, says insurer Premierline Direct, which carried out the research.

Malcolm Tarling of the Association of British Insurers says: ‘Having adequate insurance protection must be an integral part of every business strategy – without it livelihoods are at risk.’