Navigating Insurance

Understanding the Challenges for Small Businesses

with Ian Newman - Head of SME Strategy and Development

In a recent study, we found that around half of small businesses are uninsured and 2 out of 5 small business owners, say they require additional support when it comes to insurance, which is double the industry average.

Running a small business comes with a large number of responsibilities, and one critical area that may be overlooked is insurance. It’s a huge issue and one which can leave the business vulnerable to unexpected risks and challenges.

Cost Concerns

Balancing costs for a small business owner is challenging, but the practice of cutting costs for a short-term gain does not guarantee a long-term one, this can potentially expose companies to significant financial risks in the future.

Understanding Cover

1 in 3 say they are unaware of the risks they need to protect themselves against and they also struggle to understand certain insurance terms. For small business owners, it can be confusing when trying to understand both, what insurance the business might need and what cover is available. That's why 1 in 6 say they lack the confidence to choose the right insurance products and on top of that, some are unsure of what excess they would need to pay when making a claim.

Overconfident in Safety Measures

Proactive risk management is important, but it should always support insurance, not replace it. No matter how many safety measures are in place, they won't capture every potential risk, unfortunately. Making sure the right insurance cover is in place, along with good risk management is the best way to mitigate those risks and protect the business.

Complex Insurance Policies

The complexities of insurance can be overwhelming. With limited time and resources, it is challenging for businesses to always find time, to do due diligence and make sure they have the right cover in place.

Business value

Assessing every asset and every piece of equipment, to find the true value of a business can be difficult. This can lead to insufficient insurance cover being in place, due to the business being undervalued.

General Policies

There is a common misconception that general liability insurance covers all potential risks for a business. Sometimes, small businesses will need a specialised and tailored insurance to insure they have the right cover in place.

We understand that selecting the right insurance cover can be overwhelming, but we believe by engaging in conversations about the challenges faced by small businesses and discussing the possible solutions, through resources such as our podcast CovéaPod, jargon busting documents, and helpful articles, we can help small business owners navigate insurance cover and understand their needs.

Working together, our guidance can help small businesses make the right insurance choices and ensure the appropriate cover is in place.