fully covered

Imagine what would happen to your enterprise in the event of an unexpected and catastrophic incident.

The challenging economic environment in the UK is leaving small to medium-sized enterprises (SMEs) at significant levels of uninsured risk.

Research conducted by Aviva Insurance of more than 500 SMEs1 found that:

~ Almost one-third of businesses don’t take inflation or supply chain issues into consideration when reviewing how much to insure their business for. Machinery and plant costs aren’t annually reviewed by 28%.

~ 10% of SMEs – more than half a million businesses – wouldn’t survive if they had to pay up to £10,000 towards a claim that wasn’t fully covered by insurance.

~ 19% of businesses haven’t reviewed how long it would take to reinstate their business within the last two years.

– Three in ten businesses don’t have Employers Liability insurance, a legal requirement.


One in five businesses (19%) haven’t reviewed the amount of time they’d need their business interruption cover in place for within the last two years.

Supply chain disruptions have become increasingly widespread, due to Covid, the Ukraine conflict and global conditions. Obtaining the equipment to get back on its feet may take an SME longer than usual, and without adequate Interruption cover they may never manage it.

Loss of income, loss of markets to competitors, loss of key staff may mean a business might close its doors rather than recover.

A recent analysis of large claims (more than £100,000) that were settled by Aviva between 2018 – 2021 found that the average lifecycle to close a claim was 385 days.

However, SMEs estimated, on average, it would take just under six months for their business to be able to return to normal operations following a major loss such as a fire or flood. Reality says it’s a lot longer.

SMEs should regularly speak with their broker to make sure that they have cover in place to protect them from the key risks they face, particularly as their operations and the business environment may change.

Taking on Employees, even part timers or casuals, for example, means a business is legally obliged to carry Employers Liability, but 30% don’t have this cover.

The challenging economic backdrop will undoubtedly see businesses look to cut unnecessary costs.

But this shouldn’t mean not covering themselves against risk – it should require their broker to work to get adequate protection at the right price.

At FDB we aim to strike the right balance between cost and cover. DM me for a confidential chat about your requirements.

And to read the article in full, see the link to the Aviva site in the comments.


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