Allianz will target the SME sector with an enhanced motor trades policy, the company announced this week.

Allianz said that it hoped to increase the number of its policyholders, currently at 7,000, by between 5% and 6% by the end of the year.

Mark Ashwood, motor trade manager, said: "[The SME] market is where we hope to penetrate the most.

"This is where our new policy delivers the most tangible benefits. It is also the most profitable area."

The enhanced product will provide legal expenses cover for policyholders that have an income of less than £2m. It will also extend personal accident cover to directors, and increase the lock and keys limit to £50,000.

Policyholders will also have access to an online risk management tool, RiskDirector.

Allianz claims that 85% of UK businesses have no commercial legal expenses cover.