London, UK (3 June, 2010) – Less than one in three (30%) small to medium sized businesses (SMEs) in Europe believe they are insured in the event that a professional mistake leads to them being sued. This finding from new SME research* by Hiscox suggests that the insurance industry could do more to educate the sector about professional indemnity insurance and the risks of running a small business.
The second ‘DNA of an Entrepreneur’ study carried out by specialist insurer Hiscox among nearly 1,000 small business owners in the UK, Germany, France and the Netherlands also found that only 22% of those surveyed were aware of what insurance is available and what risks can be covered. This figure reduced to just 19% for UK SMEs compared to 33% for German SMEs who appear to have a better understanding of what insurance they can buy.
Commenting on the findings, Alan Thomas, small business expert at Hiscox said: “It’s clear that there is low awareness amongst SMEs when it comes to understanding what insurance cover is available. And with 70% of European SMEs feeling they would not be covered in the event they make a professional mistake, the insurance sector needs to do more to educate clients around the possible risks they face and the insurance cover they can buy.
“It’s also interesting to note that relatively few European SMEs (9%) see insurance as a way of giving them the opportunity to take more risks in business. Entrepreneurship is all about taking risks and having the right insurance in place can help small businesses take more risks in a controlled way.”
Ends
For further information please contact:
Hiscox Ltd
Notes to editors
* Research
conducted by
The Survey Shop on behalf of Hiscox among 970 SME bosses of companies with less than 50 employees in the UK, Germany, France and the Netherlands between 4th and 11th February 2010.
About Hiscox
Hiscox, the international specialist insurer, is headquartered in Bermuda and listed on the London Stock Exchange (LSE:HSX). There are three main underwriting parts of the Group - Hiscox London Market, Hiscox UK and Europe and Hiscox International. Hiscox London Market underwrites internationally traded business in the London Market - generally large or complex business which needs to be shared with other insurers or needs the international licences of Lloyd's. Hiscox UK and Hiscox Europe offer a range of specialist insurance for professionals and business customers, as well as high net worth individuals. Hiscox International includes operations in Bermuda, Guernsey and USA. Hiscox Insurance Company Limited, Hiscox Underwriting Limited, Hiscox Europe Underwriting Limited and Hiscox Syndicates Limited are authorised and regulated by the Financial Services Authority.
For further information, visit
www.hiscox.com