The study reveals that 74% of SMEs are unnecessarily exposed because they lack sufficient insurance to cover common incidents. The analysis is based on responses from 6,250 business owners in the United Kingdom, United States, France, Germany, Spain, and Portugal, and comes in a context of increasingly complex and unpredictable risks.

Despite representing about half of the global economy, SMEs demonstrate high levels of concern about risk exposure. According to the report, 92% of business owners admit that potential threats to their business are a source of anxiety. Theft or property damage, cyberattacks, and accidents or problems in the workplace emerge as the main concerns.

Still, more than half of the companies surveyed show significant shortcomings in their protection. Around 55% lack essential insurance such as general liability, professional liability, property insurance, or employer's liability, leaving them vulnerable to costly claims, lawsuits, and compensation for bodily injury or property damage.

The report also identifies a widespread lack of insurance literacy.

Almost two-thirds of business owners cannot correctly explain what general liability insurance covers, a percentage that rises to 77% for cyber insurance and 80% for professional liability insurance.

Another relevant finding concerns the lack of policy updates. About a third of SMEs have not reviewed their insurance policies for more than three years, which can result in under-insurance whenever there is growth in revenue, number of employees, or expansion of activity.

Furthermore, many business owners postpone taking out insurance: 24% only do so after they start generating profit, and 23% only when they begin dedicating themselves to the business full-time.

Given this scenario, Hiscox recommends that SMEs adopt a more structured approach to risk management, starting with identifying the main operational, financial, legal, and cyber risks. The insurer also advises a regular review of coverage, ideally annually or whenever the business experiences significant growth, and a careful analysis of policy limits, which often prove insufficient in situations of greater financial impact.

According to the insurer, the report confirms the existence of a real protection gap in the business sector and reinforces the role of insurance as a key element for the stability and sustainability of small and medium-sized enterprises in a particularly demanding economic context.