Analysis

Opinion: Are micro firms buying commercial covers like a personal lines customer?

By 2025-09-17T08:00:00

micro business

Market feedback has revealed that micro businesses of less than 10 staff could fall victim to buying commercial covers with a personal lines mindset, risking underinsurance and coverage gaps – how can the sector mitigate this?

Recent market feedback heard by Insurance Times indicated that many micro businesses and one-man-band operations tend to purchase or view their commercial covers in much the same vein as personal lines products – however, personal and commercial policies are often presented, phrased and typically sold in very different manners, with the latter typically assuming a level of base insurance knowledge that might not actually be present when it comes to micro firms, especially if time poor and resource tight leaders have to wear many departmental hats in their day job.

This could leave the door open to underinsurance – for example, if a company operating from a leader’s home believes home insurance alone is sufficient to cover business activities.

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