Underinsurance threatens a third of UK SMEs this summer, warns Allianz

Almost half of UK SMEs are preparing for their busiest season, but new Allianz UK data reveals that a third may be underprepared. 

Research from the insurer, published yesterday (24 June 2025), showed that 45% of SMEs report that summer is the busiest time for their business. 

However, 34% do not adapt their insurance levels to accommodate fluctuations in seasonality.

For example, a company may need to increase its stock levels in line with expected demand and increased stock could require larger insurance cover. 

Alex Ktenidis, head of digital and ALP at Allianz UK, said: “Underinsurance is a genuine risk for businesses of all sizes.

“But as the summer season unfolds, we’re encouraging SMEs in particular to review their insurance policies.”

Regions

The research also revealed that the seasonal summer boost in trade is most prevalent in the north east of England, with 58% of firms seeing an increase in business.

The lowest proportion of companies that say warmer weather drives activity are in the East Midlands at 37% and Scotland at 38%.

”Business owners should check they have adequate coverage and need to consider adjusting cover to reflect increased stock and operational demands during this busy trading period,” Ktenidis said.

”By taking these steps, SMEs can safeguard their operations and make the most of their bumper season.”