The UK economy relies heavily on SME businesses; it is easier to start a business now than ever before which has led to SMEs being a fast-growing area of business. According to the Back to Business FSB General Election Manifesto (2019): “One in seven people work for themselves. Self-employment gives many opportunities for people to have more control over their own lives, and for us all to benefit from the dynamism that this freedom allows. This rise is set to continue with 69% of new businesses set up in the last 5 years established by 18 to 34-year olds.”
This makes it more and more important to have the correct insurance for your business to protect from large losses. With this is the growing demand for competitive insurance prices with an attractive service. Cheap quotes from comparison sites might seem like a fast track to getting your business up and running but can you really afford to take that risk? Accepting the bare minimum could leave you bankrupt, so there is no room for uncertainty.
Actively searching for an insurance company can leave you reassured and satisfied that you are protected from unexpected situations. Using an SME insurance company can be an attractive option – being an SME themselves, these insurers are well aware of the needs of other SMEs so can proactively help to mitigate risks.
With an increasing number of SMEs supporting our economy, and with all businesses using an increasing amount of digital resources, there is an increased risk of cybercrime. Digital businesses benefit from being able to evolve and grow much quicker than other businesses; which means that their insurance needs can also change and grow rapidly. Cybercrime is growing with the increased reliance on technology and can cause enormous losses.
As well as understanding cyber risks it is important for your insurance company to understand the nature of your business to further tailor the insurance to you. Risks to SMEs are generally lower as they are often just starting out and can be subsequently viewed as less likely to put a large claim into an insurer. This allows room to have a tailed service without a huge price increase.
As well as costs, product features, and scope of cover, you should also be mindful of the accessibility of the insurers claim support and the transparency of products so that you understand how to contact them if you are required to use the insurance. This will allow the most affective support in the event of an unexpected circumstance.