Relative merits

Standardised cover is traditionally offered to small and medium-sized enterprises but this approach must be taken with care. Chris Little explains how using the right tools can result in a perfect fit.

Small and medium-sized enterprises make up 99% of the UK's entire
business population. This equates to almost four million companies, all of
which need insurance.


The Federation of Small Businesses says that increasing insurance
premiums, particularly for employers' and public liability, could force
many small firms out of business. Insurers, therefore, face the problem of
how to offer the growing number of SMEs the cover they need at a low
enough cost.


Insurers have traditionally solved the problem