SME Business Insurance

Small and medium sized businesses (SMEs) account for more than 99% of all private sector businesses in the UK – they are clearly a powerhouse driving the country’s economy.

There is no hard and fast definition for an SME, but another telling statistic is that 76% of all businesses typically described as an SME do not employ anyone else other than the owner.

What they all share in common, though, is the need for the protection given by SME business insurance.

What is SME business insurance?

What is SME business insurance?

SME business insurance provides a potentially critical role in defending the business against a myriad of risks and perils – many of which may threaten the very existence and financial viability of the enterprise.

These may be the cost of loss or damage to business premises or other assets, or the many liabilities to which any enterprise is exposed.

What does it typically cover

What does it typically cover

Those risks may be explained more fully by considering the risks that SME business insurance typically covers:

Property insurance

  • your business premises – if you own the commercial premises from which you are operating;
  • plant, machinery, tools, equipment or other business appliances – including the fittings of your business premises, whether you are the owner or the leaseholder of the property;
  • theft, loss or damage to your stock or work in progress;

Public liability insurance

  • both you and anyone in your employment owe a duty of care to members of the public;
  • this means that if anyone suffers an injury or has their property damaged because of the actions – or inaction – or you or an employee, they may sue you for compensation;

Product liability insurance

  • your customers may also claim against you and your business if goods you have sold them are faulty or fail to meet the standards you advertised;
  • product liability insurance is designed to indemnify you against such claims;

Professional liability insurance

  • in the course of your business activity, you might offer advice and give recommendations to your customers about decisions they need to take;
  • if your advice results in their suffering a financial loss, they may sue you for damages, alleging your professional negligence;

Employers liability insurance

  • if you are employing anyone else to help run your business, the law requires you – subject to rare exceptions – to hold a minimum of £5 million employer’s liability insurance;
  • this is so that you may meet any claim made by an employee – past or present – who suffers an injury or contracts an illness because of the work they have done for you.

Who is SME business insurance suitable for?

Who is SME business insurance suitable for?

Given the wide-ranging scope of the typical SME business insurance package, you might appreciate why many enterprises consider this type of cover indispensable.

Key components of SME business insurance may also be tailored to meet your specific needs, so whether are a sole trader or a corporation, a customer-facing business, or providing back office services, at Specialist4Business, we are able to arrange the cover that suits your particular requirements



SME business insurance may come in all shapes and sizes as it rises to meet the challenges and risks faced by many different types of enterprises.

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