UK businesses 'cutting back on insurance to save money'

Companies in the UK are trying to cut costs by scaling back their insurance cover, according to one industry commentator.

Paul Hine, managing director for Hine Insurance Brokers, recently offered insight into the situation, stating that the current financial turbulence afflicting Britain has led businesses to seek savings wherever possible.

As such, many companies have opted to cut back on their insurance - with many bosses considering certain types of cover non-essential.

"In terms of insurance, we're noticing this with areas like directors' and officers' liability insurance, and legal expenses insurance," he said.

In a previous interview, Mr Hine claimed that businesses can spend smartly with cover by taking a detailed look at their company's requirements before purchasing an insurance product.

The industry expert suggested that the cuts were in fact ironic, as during times of recession there is often an increase in claims in this area.