Business owners rate protecting their businesses above insuring their staff’s safety, according to figures released by Norwich Union.

Tough economic and financial circumstances has seen smaller companies squeezed for cash and taking an increasingly defensive approach to business insurance.

The insurer discovered businesses were significantly more likely to consider policies which protected premises, business loans and reduced staff cover as more important than life, personal accident or property cover for staff.

But the majority of respondents also admitted to not understanding the product, with 13 per cent having never heard of it, 26 per cent having heard the name but not knowing what it covers and 36 per cent not understanding the difference between individual products.

The survey also revealed the business owners most common worry is a downturn in the market, with 46 per cent of respondents placing it in their top three concerns, followed by losing clients to competitors, at 32 per cent, clients failing to pay for services, at 30 per cent and utility bills, at 23 per cent.