SME underinsurance: what the latest ABI findings mean for your customers

The Association of British Insurers’ latest study highlights a challenge facing many UK SMEs: underinsurance. Despite the rising complexity of risks, many businesses don’t have the cover they need, or sometimes, any cover at all.

According to the ABI*:

• 28% of sole traders have no insurance at all
• One in three employers lack compulsory Employers’ Liability cover
• Half of SMEs haven’t reviewed their cover within the last 12 months
• Only 26% consider cyber cover essential, even with increased reliance on digital systems
• Just 29% of SMEs concerned about losing premises have the protection in place

These gaps often stem from misunderstanding policy requirements, under‑estimating property rebuild values, or overlooking newer exposures such as cyber risk. The impact can be severe: reduced claim settlements, business interruption, unexpected costs and prolonged closures.

If you need support with an upcoming renewal or a specific risk, our team is here to help. Please reach out to your usual Intact Insurance contact.

*Source: The Association of British Insurers, ‘Small Business, Big Risk: Tackling SME Underinsurance’ Report, January 2026.