A survey of 600 SMEs by insurer Vero shows that 20% of business owners are looking to increase their insurance cover as a result of Covid-19. However, 10% are thinking about reducing their cover.
Mark Wilkshire, the firm’s Executive General Manager Customer Experience, says 71% of the SMEs surveyed have taken a revenue hit as a result of Covid-19, and that business owners are twice as likely to be impacted by financial vulnerability compared to householders.
Wilkshire says: “Having insurance is vital in building a financially resilient business. Cancelling a policy might cut some costs in the short term, but it can come back to bite you.”
Vero is helping its SME customers maintain their insurance cover with initiatives such as Suncorp New Zealand’s $2 million hardship fund, established to assist Vero and Asteron Life customers experiencing financial pressure as a result of Covid-19.
“Our hardship fund is there to help our customers retain their insurance cover, while Vero’s other support options can help our SME customers as they recover from Covid,” says Wilkshire.
Vero’s support for its SME customers include payment assistance options for when their policies renew, flexible payment terms, and adjusting excesses on business insurance policies.
Our hardship fund is there to help our customers retain their insurance cover…
Wilkshire says: “Our 2019 Vero SME Index findings showed brokers providing tailored risk management advice add substantial value to SMEs. That advice is independent, impartial and can help businesses face the future with confidence.”
The Vero survey also found that 39% of business owners are struggling to make ends meet, compared to 21% pre-Covid.
The insurer will use the survey’s findings to work with brokers and advisers to help them offer “…a compelling proposition to SMEs”.