The insurance industry has an important role to play in supporting SMEs during these challenging times. Faced with financial pressures and trading uncertainty, it’s more important than ever to have the right insurance.

If an SME is underinsured, a loss could easily become a financial burden to the business, potentially even forcing it to cease trading.

By providing advice around the most appropriate ways to protect the business, whether that’s sourcing insurance or advising on risk management strategies, brokers can add true value to their SME customers.

A regular review of limits of liability is prudent across all covers too. This can keep the business protected but could also identify any gaps in cover. Business operating models especially in the SME sector continually evolve.

The pandemic highlighted just how quickly they can pivot, with examples including restaurants launching food delivery services and gyms offering online fitness classes. Our survey shows there’s no sign of this adaptability going away but these shifts can mean different types of insurance are required to reflect changing liabilities. 

As well as reviewing cover and business activities, the insurance industry can help customers by ensuring they understand exactly what protection they have. Insurance is full of jargon and this can leave business owners unaware of the cover they have, even in times when it could help them get back on their feet.

Cutting through the jargon by using clear definitions and clarifying policy wordings and conditions supports clients but also builds trust in the industry. Ensuring cover meets needs is also essential under Consumer Duty. 

At Allianz, we recognise the challenges SMEs are facing and our proposition has evolved to give these customers the additional support they need during these testing times.

Underinsurance features heavily, especially as it can be even more damaging than the initial loss. As well as our Underinsurance Hub, we regularly issue podcasts, webinars and articles to raise awareness, read our latest article – Underinsurance - a continuing issue. Another key initiative is the inclusion of legal cover as standard in our SME products. Without the luxury of an in-house legal team, the law can be tricky to navigate. Our in-house team of legal professionals can advise SME customers on the correct actions to take so they can operate confidently without costly solicitors’ fees. We also offer access to over 100 free legal templates, helping them to ensure that their documents are compliant and fit for purpose - from HR policies to supplier contracts. Our specialist tax helpline also provides advice on any tax matter affecting their business.

Support is also available for SMEs experiencing claims. Wherever possible, we aim to resolve claims at first contact but we also recognise that some claims are more complex. Therefore, we offer kick-start payments of up to 50% of the claim reserve value for any commercial property loss between £10,000 and £100,000*. This supports SME cash flow, helping them get back to business quickly.

We’re constantly looking for ways to support our customers, responding to market trends or leaning into the latest technology to ensure they can focus on their business. This has seen us introduce proactive surge messages for brokers, with videos and guidance on how to protect property and vehicles from extreme weather. Similarly, when the pandemic started to stretch budgets, we removed service charges and now offer instalments at 0% for all regulated customers, as part of our affordability review.

Working closely with your clients to understand the risks they face and help them access the right insurance cover and risk mitigation strategies ensures they’re prepared for even the toughest conditions.