![\"UK](\"https:\/\/www.policybee.co.uk\/blog\/wp-content\/uploads\/2023\/02\/uk-business-stats-graphic-shutterstock.png\")
<\/figure>\n<\/div>\n\n\nCurious about how small businesses are handling risk right now? These UK business insurance statistics reveal how SMEs are protecting themselves and where many are still leaving big gaps.<\/p>\n\n\n\n
SMEs remain the backbone of the UK economy. There are 5.6 million<\/a> of them, making up 99.85% of all businesses. Together they generate 51% of total turnover and account for 60% of UK employment.<\/p>\n\n\n\n Despite their importance,\u00a0almost half of these businesses have no business insurance.\u00a0And among those who do, many\u00a0don\u2019t\u00a0have enough cover, often unintentionally. Some areas, like cyber insurance, are seeing more awareness, but overall protection is still patchy.\u00a0<\/p>\n\n\n\n Need help choosing the right business insurance for you?\u00a0Take a look\u00a0at how we can support you with\u00a0<\/em>guidance and advice on what you may need<\/em><\/a>.<\/em>\u00a0<\/p>\n\n\n\n <\/p>\n\n\n\n The UK insurance industry<\/a>\u202fis the largest in Europe and the third largest globally. <\/p>\n\n\n\n The London market (which includes business insurance)\u00a0contributes\u00a0almost\u00a0\u00a350bn<\/a>\u202fto\u00a0the economy each year.\u00a0\u00a0<\/p>\n\n\n\n UK spending\u00a0on business insurance\u00a0varies hugely by business size:\u00a0<\/p>\n\n\n\n Despite this, many SMEs aren\u2019t reviewing their policies regularly. Only half reviewed their cover in the last year<\/a>. <\/p>\n\n\n\n Other key UK small business insurance facts: <\/p>\n\n\n\n <\/p>\n\n\n\n Almost all\u00a0SMEs have insurance of some kind.\u00a0However,\u00a028% of sole traders have no insurance at all. And\u00a0even\u00a0more concerning, 39% of companies with one to nine\u00a0employees\u00a0don\u2019t\u00a0have employers\u2019 liability insurance\u00a0\u2013\u00a0despite it being a legal requirement.\u00a0\u00a0<\/p>\n\n\n\n Other interesting business insurance statistics: <\/p>\n\n\n\n One of the reasons for businesses being uninsured is likely a lack of understanding about what they need. A GlobalData survey found there were significant gaps in knowledge: <\/p>\n\n\n\n <\/p>\n\n\n\n We know almost half of SMEs have no insurance at all. But even among those who do, underinsurance<\/a> (AKA not having enough insurance to cover their risks) is incredibly common. <\/p>\n\n\n\n A recent survey by Hiscox<\/a> found nearly three quarters of small businesses are underinsured globally. <\/p>\n\n\n\n In 2025, research from Charterfields showed that 88% of commercial sites<\/a> surveyed were underinsured on building values. <\/p>\n\n\n\n Only\u00a050% of SMEs\u00a0reviewed their insurance\u00a0cover in the past year, and\u00a040%\u00a0say their biggest barrier is simply a lack of understanding.\u00a0Only\u00a014.5%\u00a0of UK SMEs say they are\u00a0actually\u00a0concerned\u00a0<\/em>about being underinsured.\u00a0<\/p>\n\n\n\n This shows the vital role a broker can play<\/a> in educating and advising SMEs. <\/p>\n\n\n\n <\/p>\n\n\n\n Despite rising risks, being adequately insured ranked lowest of 23 concerns for SMEs in GlobalData\u2019s survey. <\/p>\n\n\n\n Top current worries for UK SMEs<\/a>\u00a0right now:\u00a0\u00a0<\/p>\n\n\n\n For SMEs feeling financial pressure, insurance can be the safety net that keeps them afloat. Smaller businesses may have lower odds of facing a claim, but they\u2019re also the least likely to survive one without insurance. <\/p>\n\n\n\n <\/p>\n\n\n\n The\u00a0average spend on insurance<\/a>\u00a0varies significantly\u00a0depending on business size:\u00a0<\/p>\n\n\n\n 81% of small business owners shop around<\/a> for their insurance. However, only 52% actually switch<\/strong>. So while SMEs appear to be active shoppers, they’re reluctant to switch.<\/p>\n\n\n\n The most common reasons for businesses to switch are: <\/p>\n\n\n\n SMEs buy their insurance fairly evenly through different channels, including price comparison sites, direct insurers, and brokers. <\/p>\n\n\n\n <\/p>\n\n\n\n Around\u00a040%<\/a> of SMEs\u00a0reported having made an insurance claim in the last year.\u00a0<\/p>\n\n\n\n Property damage claims were the most common\u00a0in 2025 (31%). Commercial vehicle incidents\u00a0and equipment failure\u00a0were\u00a0joint\u00a0second\u00a0(27%).\u00a0<\/p>\n\n\n\n According to ABI\u2019s most recent study, the likelihood of a having to make a claim varies widely, depending on the size and nature of your business. So while a claim is an unusual scenario for a sole trader, it\u2019s fairly routine for a medium business. <\/p>\n\n\n\n Claim likelihood increases with business size: <\/p>\n\n\n\n The\u00a0ABI survey\u00a0found that\u00a0a very high\u00a0percentage of claims made are accepted, with\u00a0only\u00a0between 3% and 10%\u00a0turned down. However,\u00a0many\u00a0businesses only receive\u00a0partial payment.\u00a0\u00a0<\/p>\n\n\n\n Between 25% and 32% of claims were partially paid because costs exceeded policy limits, and up to 11% were partially paid due to exclusions in policy terms.<\/p>\n\n\n\n <\/p>\n\n\n\n The UK PI market was estimated to be worth\u202f\u00a33.3bn<\/a>\u202fin 2023, with around 1.5 million policyholders<\/a>. <\/p>\n\n\n\n 36%<\/a>\u00a0of UK SMEs have professional indemnity insurance.\u00a0\u00a0<\/p>\n\n\n\n Traditional professions like solicitors, accountants and architects account for 75-80% of the PI market \u2013 and most claims (56%<\/a> of them from solicitors). The solicitor PI market alone is worth around\u202f\u00a3350m<\/a>. <\/p>\n\n\n\n <\/p>\n\n\n\n If you employ anyone, it\u2019s a legal obligation to have\u202femployers\u2019 liability<\/a>\u202f(EL). It protects your workers from accidents and workplace-related illnesses. And it helps you out too. <\/p>\n\n\n\n Workplace illnesses cost employers\u202f\u00a34,800<\/a>\u202fon average, according to the Health and Safety Executive<\/a>. If an illness results in their worker being off work for longer than a week, it can cost them over twice as much (\u00a310,000).\u00a0<\/p>\n\n\n\n Yet research from the British Insurance Brokers Association<\/a> (BIBA) found that\u202f26%<\/a>\u202fof SMEs stopped buying compulsory EL in 2023.\u00a0<\/p>\n\n\n\n Some interesting employers\u2019 liability insurance facts: <\/p>\n\n\n\n <\/p>\n\n\n\n Cyber insurance has been something of a hot topic in the last year. With some colossal cyber-attacks affecting major UK companies in 2025, cyber insurance has been on everyone\u2019s lips. UK insurers paid \u00a3197 million<\/a> in cyber claims in 2024 \u2013 a huge 230% increase on the previous year. <\/p>\n\n\n\n 43%<\/a>\u202fof businesses reported experiencing a cybersecurity attack or breach in 2025. <\/p>\n\n\n\n On a more positive note, businesses do seem to be more aware of the risks and take steps to protect themselves. <\/p>\n\n\n\n Just under half of all businesses (45%<\/a>) are now insured against cybersecurity risks. Figures are higher for SMEs specifically, with 62% of small business and 65% of medium businesses being covered. <\/p>\n\n\n\n However, of those\u00a0insured,\u00a0only 7%\u00a0of small businesses, 18% of medium businesses, and 27% of large businesses\u202fhave a specific cyber policy. Most have\u00a0cyber security insurance as part of a wider insurance policy.\u00a0<\/p>\n\n\n\n Cybercrime is often seen as a problem that only affects large companies, but \u202f96% of all cyber-attacks are directed at SMEs<\/a>. <\/p>\n\n\n\n Unsurprisingly, AI is now cited as the second highest risk<\/a> for businesses. <\/p>\n\n\n\n <\/p>\n\n\n\n Claims are always on the rise. An increasing \u2018blame culture\u2019, more extreme weather, and other challenging political and environmental changes could mean difficult times ahead for businesses. <\/p>\n\n\n\n Despite this, these business insurance statistics show there\u2019s a tendency among SMEs to reduce or cancel their insurance cover, which is a worrying trend. <\/p>\n\n\n\n For peace of mind, it\u2019s advisable to have the right insurance. You\u2019ll know you\u2019re protected, whatever mistake you make. Or when disaster strikes. <\/p>\n\n\n\n Professional indemnity insurance<\/a>\u202fis there to protect your business from claims of negligence. With PI-related claims accounting for over a quarter of all claims, it\u2019s certainly worth considering. No matter how small your business is. Because even a minor claim could cost you more than you can afford. <\/p>\n\n\n\n At the very least, if you employ anyone, it\u2019s a legal obligation to have\u202femployers\u2019 liability<\/a>. <\/p>\n\n\n\n If you\u2019re not sure what type of insurance you need, our\u202fguide for small businesses<\/a>\u202fprovides a handy reference. Or, you can give us a call on\u202f0345 222 5391<\/strong>\u202fand one of our friendly advisers will help you out. <\/p>\n\n\n\n Image used under license from Shutterstock.<\/em><\/a><\/p>\n\n\n\n <\/p>\n","protected":false},"excerpt":{"rendered":" Curious about how small businesses are handling risk right now? These UK business insurance statistics reveal how SMEs are protecting themselves and where many are still leaving big gaps. SMEs remain the backbone of the UK economy. There are 5.6 … Continue reading UK business insurance statistics at a glance<\/h2>\n\n\n\n
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How many businesses don\u2019t have insurance?<\/h2>\n\n\n\n
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What percentage of businesses are underinsured?<\/h2>\n\n\n\n
The effects of rising cost pressures on small business insurance statistics<\/h2>\n\n\n\n
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How much do UK small businesses spend on insurance?<\/h2>\n\n\n\n
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What are the most common business insurance claims?<\/h2>\n\n\n\n
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Professional indemnity insurance statistics<\/h2>\n\n\n\n
Employers\u2019 liability insurance statistics<\/h2>\n\n\n\n
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Cyber insurance statistics<\/h2>\n\n\n\n
What can we learn from these business insurance statistics?<\/h2>\n\n\n\n