Due to the continuing Covid-19 pandemic, more than half of SMEs have stopped paying for a range of business insurance policies.
Business property cover, professional indemnity, and cyber insurance were the lines SMEs commonly excluded. Employers’ liability insurance was the line that got abandoned the most.
This data is in line with the latest Insurance Index research from Premium Credit, which found that almost one in five (19%) SMEs have stopped paying for business interruption (BI) insurance.
The premium finance provider is advising SMEs to consider premium finance, which for a small charge enables them to pay monthly for cover instead of in a lump sum.
Steve White, chief executive at Biba, commented, “the Premium Credit Insurance Index outlines some worrying statistics. SMEs must maintain insurance cover so they remain protected during these challenging times. Insurance brokers can help them choose suitable insurance and discuss premium finance should they want to spread the cost of their insurances.”
The research showed the risks of being underinsured – 42% of SMEs said they had suffered damage or losses in the past five years, but they could not claim because of not being insured or being underinsured.
Around 24% said they were underinsured, while 18% did not have the appropriate insurance.