A new study by Markel Direct, the small business insurance specialists, has revealed that over half (52%) of small business owners using social media for their business consider it the most important marketing channel. However, the data also highlights that many UK small business owners could be leaving themselves exposed to legal and financial risks, as nearly half (47%) don’t have the appropriate level of cover in place.

The study, which asked 501 UK small business owners and tradespeople how they use social media to market their business, found that while many are aware of the responsibilities that come with posting content online, significant gaps remain when it comes to protection and preparedness.

Social media drives growth, but raises legal concerns

The research found that only 39% have insurance in place to cover legal action relating to issues such as copyright infringement or breaches of confidentiality linked to their social media activity. In contrast, nearly half (47%) say they do not have this type of protection, while a further 8% are unsure whether they are covered.

Despite the potential consequences, some businesses continue to share client work online without following clear processes. Nearly one in five (19%) admit they do not always obtain client permission before posting images or videos of completed work on social media.

Worryingly, more than a quarter (28%) say they would not know what steps to take if a client raised a legal concern about content they had shared online.

The findings come at a time when social media has become an essential marketing tool for small businesses. Separate findings from the research revealed that 72% believe social media is necessary to stay competitive, while 84% generate at least some business through their online presence.

Social media has become one of the most powerful ways for small businesses to showcase their expertise and attract new customers, but many business owners don't realise that the same rules around consent, copyright and confidentiality apply online as they do offline.

Many entrepreneurs have effectively become marketers overnight, often without formal training or dedicated support. Taking a few simple steps, such as obtaining written permission before sharing client projects and understanding what insurance protections are available, can help reduce the risk of disputes further down the line.

Businesses are navigating social media with little formal training

The study also highlighted that many entrepreneurs have become self-taught marketers out of necessity. More than three-quarters (77%) manage their own social media accounts, while 69% have never hired a professional to create content on their behalf. At the same time, 65% have never received any social media training.

Expert tips to help small businesses use social media safely

As the research revealed that many of the small businesses owners on social media are handling the channel themselves, we’ve outlined key steps to take to minimise risk when using social media for your business.

1. Always get client permission before posting
If your content features a client's home, premises, personal information or identifiable details, seek permission first and keep a record of that consent.

2. Understand your insurance cover
Review your business insurance policy to understand whether it provides protection against claims relating to copyright infringement, confidentiality breaches or other media-related issues.

3. Use licensed music, images and content
Just because content is easily accessible online doesn't mean it is free to use. Ensure you have the appropriate rights to any music, imagery or creative assets featured in your posts.

4. Create a simple social media policy
Having clear internal guidelines around what can and cannot be shared helps reduce the likelihood of mistakes, particularly if multiple people are contributing to your business accounts.

5. Act quickly if concerns are raised
If a client requests that content is removed or raises a legal concern, respond promptly, investigate the issue and seek professional advice where necessary.

6. Prioritise privacy
Where possible, avoid including identifying private information such as house numbers, addresses, vehicle registration plates or images of clients and their families in social media content.

7. Seek expert advice when needed
If you're unsure about the legal implications of a post, speaking to a legal professional before publishing can help prevent costly issues later.