Contrary to the persistent notion that small- and medium-sized enterprises (SMEs) aren’t too willing to part with funds when it comes to buying insurance, an Allianz-commissioned survey has found that cost isn’t the biggest consideration for these businesses.   

Conducted by market research company OnePoll, the online survey of 500 decision-makers revealed that the top priority for SMEs looking to be insured is breadth of cover (75%), followed by claims handling (58%) and the insurer’s reputation (47%). In fact, only 31% of respondents regard “cheapest price” as a priority among the factors. 

More interestingly, poll results showed that 80% of business leaders would be “prepared to pay more” for insurance if they knew that their coverage wasn’t sufficient.

“It is promising that SMEs recognise the importance of cover over price, particularly at a time when loss adjusters have reported under-insurance of around 44%,” commented BIBA chief executive Steve White. “We all want to ensure that claims are paid quickly and in full to help businesses recover and a simple way to ensure this, is to make sure that the correct levels of insurance are in place.

“It is important for businesses to review their cover regularly and insurance brokers have the expertise and knowledge to advise them on purchasing suitable cover.”

For Allianz director of SME markets David Martin, it’s clear that these businesses value breadth of cover over cost. More so if they are provided guidance as to the adequacy of their policies.

“Brokers can be confident that SMEs recognise the need for good advice to ensure their business risks are appropriately understood and managed,” said Martin.