One in five SMEs do not know what types of insurance cover exists for their needs

Opinium Research carried out a survey amongst 1,000 senior decision-makers at UK SMEs on behalf of Cicero Research, exploring the impact of economic events on business growth, the risks businesses face and how they manage those risks. 

The findings revealed that worryingly, many SMEs are not sufficiently protected against risk. Despite nearly three-quarters (73%) of SMEs recognizing that new risks exists that were not present when they first opened, 82% have not altered or increased their insurance coverage as a result of, or in response to, technological changes.

Furthermore, two fifths (43%) have not reviewed their business insurance for over a year. Only 14% plan to increase their cover in the next 12 months, whilst three quarters (74%) plan to keep their insurance coverage the same.

When asked what would happen to their business if they faced a loss of £50,000 for which they were not insured, over a quarter of SMEs (28%) say they would go out of business. One in five (20%) would need to delve into their savings, remortgage or ask friends or family for help.

A major hurdle of successful risk management is the lack of awareness amongst SMEs, with one in five admitting that they did not know what types of insurance cover exists for their needs.

The impact of Brexit  has been the subject of much discussion over the past year. Seven in ten of those polled do not view Brexit as a threat. More specifically, two fifths (43%) do not think Brexit will have an impact at all for business, while 27% said it would be positive. Of the 18 sectors surveyed, manufacturing (45%) and IT (43%) were the most positive about the impact of Brexit.

 

Read more about this research here.