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Home » Entrepreneur » From tangible to intangible: what SMEs need to know about business insurance

Richard O’Dwyer

Managing Director, Hiscox

As the business landscape undergoes rapid changes, SMEs need resilient protective strategies. Tailored insurance solutions can ensure stability and success in today’s dynamic environment.

For small and medium-sized enterprises (SMEs), the approach to business insurance has undergone a significant transformation. Traditionally, insurance for such businesses primarily focuses on physical assets and liability for property damage or injuries on the premises. However, the dynamics of modern business have ushered in new challenges, especially for SMEs in professional services.

Evolving Irish business insurance needs

The Irish economy has seen a surge in knowledge-based companies, including those in technology, media, digital services, advisory and consultancy. Consequently, the traditional exposures faced by businesses have evolved, demanding a reassessment of insurance needs.

While conventional concerns like property damage and liability persist, emphasis has shifted towards safeguarding intangible assets and addressing emerging risks, particularly in a technology-led environment.

Business insurance solutions

Hiscox understands that, in our changing world, it is increasingly crucial to help protect businesses against such impalpable risks. Professional indemnity insurance has become vital for businesses providing services, covering scenarios where bad advice could lead to legal challenges.

Cyber insurance has gained prominence with increasing reliance on online platforms and cloud-based services. In an era of rising regulations and risk, insurance becomes crucial, offering protection against legal questioning stemming from regulatory compliance.

Emphasis has shifted towards safeguarding
intangible assets and addressing emerging risks.

Bridging insurance awareness gaps

The challenge now lies in bridging the awareness gap. Many still associate insurance primarily with physical assets, overlooking the other — less obvious — risks they face. Meanwhile, there is a general notion that insurance is just about ticking boxes.

However, insurance actually acts as a strategic investment that provides access to experts and services in times of need. This means if your business does hit difficult periods due to technological breaches, you can continue to run your business while the situation is dealt with swiftly and professionally.

Adapting to changing risks

For businesses, the core insurance package offered by Hiscox typically includes professional indemnity, cyber, directors’ and officers’ insurance, along with property and liability coverage. The emphasis is on holistic coverage and encourages business owners to view insurance as a positive tool for managing risks and securing their business’s future.

The evolution of insurance, spearheaded by insurers like Hiscox, prompts SMEs to proactively stay abreast of emerging risks, emphasising the need for adaptive insurance approaches. This recognition marks a crucial step for enterprises to adapt and secure their footing in an increasingly dynamic business environment.

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