‘Set and forget’ approach leaving 75% of SMEs underinsured – Hiscox

Nearly three quarters of global SMEs are at risk of underinsurance, with many businesses failing to update their coverage despite meaningful changes in revenue, staff and operations.

This is according to the inaugural Global Protection Gap Report from insurer Hiscox, the findings of which were based off of a survey of 6,250 small business owners between 18 and 30 June 2025.

The report, launched today (10 November 2025), found that cyber attacks – mentioned in 33% of responses – theft or damage to property (34%) and workplace issues and injuries (32%) were the top concerns for small business owners, with 92% saying they were “kept up at night” by such worries.

Despite the concerns, 55% of SMEs were found to have a protection gap related to professional indemnity, public liability, property damage or employers’ liability cover.

Furthermore, 65% of respondents were unable to accurately describe what public liability insurance covers, 77% were unable to do the same for cyber insurance and 80% failed to do so for professional indemnity cover.

’Set and forget’

Hiscox suggested that many firms were taking a “set and forget” approach to insurance and suggested three areas to consider to help businesses attain adequate cover.

These include understanding their personal risk landscape, staying updated on their industry’s risk developments and reassessing their insurance needs regularly.

Joanne Musselle, chief underwriting officer at Hiscox Group, said: “As the business environment continues to evolve at pace, so too do the challenges that can impact the fundamental wellbeing of a small business.

“From cyber threats and supply chain disruption to environmental events and shifting regulatory requirements, the landscape is shifting fast and it’s easy for it to feel overwhelming.

“The intention of this report is to help SMEs focus on some of those risks, what they can do to minimise their exposure and to help give them easier access to the resources that are out there to help and support them.”