Being insured against every eventuality is not always necessary when starting up in business, it has been asserted.

According to a spokesperson for the Federation of Small Businesses (FSB), while in an ideal world, the owners of firms would take out insurance for everything, the "practical, financial realities often take over".

He stated: "If it means that you don’t have enough money to perform your business operations or get in enough stock then insurance might go by the wayside, but that’s a decision that every business owner has to take based on the individual business."

The spokesperson went on to say that business people should evaluate if they need insurance on an individual basis, saying that they often need to balance "financial realities which are often quite tight".

Research published earlier this year by revealed that 29 per cent of small companied surveyed had no insurance.