More than half (59%) of small- and medium-sized enterprises in the UK are borrowing £1,105 on average to pay for their insurance policies, according to premium finance provider Premium Credit.
The company’s insurance index, which monitors insurance buying and financing, found the following:
Additionally, 24% say they have borrowed less over the past year; 37%, same amount; and 21%, more credit for the purpose of purchasing cover.
Broken down by insurance type, Premium Credit said here’s how credit use for taking out insurance stacks up:
|
Type of insurance |
Percentage of SMEs using credit (March 2022) |
|
Vehicle insurance |
44% |
|
Property insurance |
39% |
|
Public and product liability insurance |
29% |
|
Employer liability insurance |
28% |
|
Business interruption insurance |
17% |
|
Cyber insurance |
16% |
|
Other financial lines cover |
14% |
|
Key man insurance |
11% |
|
Directors’ & officers’ insurance |
9% |
“Credit plays a vital role in ensuring that businesses continue to have the right type and level of insurance that they need across their operations,” said Premium Credit chief sales officer Owen Thomas (pictured).
“The 100% offer of a finance option by brokers – especially because of the continuing impact of the COVID-19 pandemic on businesses up and down the country – has never been more critical.”
Premium Credit, on a yearly basis, lends more than £3.8 billion to over two million customers.
