The Association of British Insurers has launched a new guide to help SMEs understand their insurance needs and to identify and remedy gaps in their cover. The guide explains the covers that businesses are legally required to have in place and offers simple steps for business owners to follow when buying insurance.

The ABI developed SME Insurance guide: what every business needs to know in response to findings from research it commissioned Public First to conduct into the SME insurance sector.

The research highlighted some significant insurance gaps. It found that although almost half (48%) had physical premises only 23% of those had business interruption insurance. It also discovered that although 57% had portable electronic equipment, only 31% had commercial contents insurance.

Chris Bose, director of general insurance policy at the ABI, said: “SMEs are the backbone of our economy, and having the right insurance protection is essential to helping them stay resilient when the unexpected happens. From cyber incidents to supply chain shocks, the right cover can mean the difference between a temporary setback and a potentially devastating halt to operations.
“Our new guide, developed with Public First, is a positive step forward. By simplifying language, demystifying insurance products, and setting out clear stages of the insurance journey, it gives SMEs the clarity and confidence they need to make informed decisions to protect their business. Stronger understanding leads to stronger resilience, and this guide will help businesses get there.”