The latest from Premierline who have been looking into SME coverage;
A major knowledge gap has been revealed amongst UK business owners, leaving thousands without essential protection. A recent survey of 2,000 business owners by insurance broker experts Premierline has revealed that every surveyed uninsured SME in Newcastle lacks insurance because they are unsure of the correct cover needed.
This figure is dramatically higher than the national average (8%) highlighting a stark regional divide in understanding of insurance covers and products.
The findings show a wider pattern of ‘insurance blind spots’ across the UK, where uncertainty, lack of confidence and confusion are preventing SMEs from securing the protection they need.
However, it’s not just Newcastle struggling with uncertainty regarding business insurance. Many business owners in Brighton and the South-East are stuck at the very first hurdle. SMEs here are eight times more likely than the national average to say they ‘wouldn’t know where to start’ when understanding insurance cover (4% vs 0.5% nationally).
A similar trend is seen in the West Midlands, where businesses in Birmingham are six times more likely to feel unsure about where to begin (3% vs 0.56%).
Elsewhere, confusion around what cover is actually required remains a major barrier. In Scotland (particularly Edinburgh) and Leicester, 50% of uninsured business owners say they are unsure what insurance they need, making them five times more likely than the UK average to lack clarity.
The data also reveals a wider confidence issue among UK SMEs when it comes to understanding policy details and coverage. In Stoke-on-Trent, one in four business owners (25%) say they are ‘not confident at all’ that they understand what business insurance covers, five times higher than the national average of 5%.
A similar, though less severe, trend can be seen across Yorkshire. In Sheffield, businesses are two times more likely to lack confidence (10%), while in Leeds, they are nearly two times more likely (7%).
While many businesses across the UK are focusing on reducing costs, the data suggests that in several regions, the issue is not just affordability, but a lack of clarity around what protection is needed in the first place.
Rebecca Leversidge, Marketing Manager at Premierline, says: “While cost is often seen as a barrier to taking out business insurance, this data shows that for many SMEs, uncertainty and lack of confidence are just as significant.
In some regions, particularly the North-East, businesses aren’t choosing to go without cover. Instead, they simply don’t know what they need or where to start, which has led to a complete lack of insurance.
As an advised broker, Premierline’s mission is to bridge this gap. Our experts provide professional recommendations that help local entrepreneurs navigate their specific risks, removing the guesswork that currently leaves thousands of businesses vulnerable.
Taking the time to understand the risks your business faces and seeking advice where needed can make a huge difference. Having the right protection in place is essential for long-term resilience, particularly during periods of economic pressure.”
To know more about the types of cover your business may need, visit Premierline and find the right cover for your business today.
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