A third of UK SMEs could be uninsured for the biggest threats to their businesses

A new survey conducted by business insurance provider SME Insurance (SMEi) reveals that 34% of UK SMEs polled could be uninsured for the biggest risks they face.

Of those firms that have insufficient insurance cover, 34% chose cyber-attacks from a list of major risks as the biggest threat to their business, according to the research. Public liability is ranked in second place by 28% of SMEs, followed by crime, such as break-ins, at 19%.

When it comes to cyber-crime, 30% of respondents state they would be most vulnerable to computer viruses, while 22% claim data theft is the sole digital threat. According to 15% of respondents, a lack of security awareness amongst its employees may be leaving their business vulnerable online.

Following widespread flooding across the UK last winter, 44% of SMEs questioned believe the UK government and the Environment Agency could do more to protect small businesses from flooding, with 22% stating that national flood defences could be improved.

Jonathan Webber, commercial director for SME Insurance, said:

“This survey highlights an apparent lack of insurance protection among SMEs for threats that could be potentially catastrophic to their businesses, which unfortunately puts them in a vulnerable position. Identifying and securing the insurance protection they need should be their top business priority.”