BUSINESSES across the North-East are at risk by failing to take out adequate insurance cover, according to a survey.

A poll of more than 1,000 small and medium-sized UK businesses found that one in four are not properly insured, with firms across region the least likely to take out adequate cover.

Of those taking part in the Lloyds TSB survey, only 2.5 per cent rated insurance as a priority, with equipment, advertising, location and premises all being more important than protection for their business.

Graeme Trudgill, of the British Insurance Brokers Association, said: "There is some key insurance that all businesses really need, including employers' liability, public liability and business interruption insurance."

Mark Burdett, of Gateshead broker Northern Counties Insurance, said: "I know, for many businesses, insurance is seen as a grudge purchase and one which they might rather not have to make.

"Whilst insurance isn't a sexy purchase, it can be one of the most important a business can make. By not taking out adequate insurance cover, some North-East businesses are risking a great deal."