Are you concerned about the rising cost of doing business? Are you unsure about how you can advise and support the small businesses most deeply affected by this crisis? In this episode, we’re very pleased to be speaking with David Perry, Managing Director of the FSB Insurance Service, about the rising cost of doing business and the role of insurance in confronting and mitigating this crisis. In conversation with Boston Tullis’ Sarah Myerscough, he focuses specifically on how smaller firms struggling with paying their insurance premiums are navigating this crisis alongside the various other political and economic calamities currently unfurling. Furthermore, he explains the steps which both brokers and insurers can take to ease the pressure on small businesses during this period, with reference to a recent report conducted by the FSB which assesses the impact of the hard insurance market on SMEs.   Quote of the Episode “Our biggest concern is that smaller firms quite often need as much advice as bigger firms, because a lot of them do all sorts of very different things. They just don't do it quite as much as a very large business does. But they still have the same complexities, the same issues to face, and they need to have people to talk to.” Throughout the episode, David repeatedly emphasises that the size of a business should not impact upon the attention it is paid by insurers and brokers. There is not, and cannot be, a generic, one-size-fits-all approach to tackling problems for small businesses, all of which have their own unique intricacies and issues which should be reflected in their insurance cover. As such, SMEs should be treated as a priority, rather than a sidenote, during the cost of doing business crisis, and must be given sufficient advice and support to ensure that they are paying for appropriate cover.   Key Takeaways The UK market is predominantly made up of VSMEs, so it’s really important to understand how the rise in premiums and other issues relating to insurance affects this target market. In the recent survey conducted by the FSB (Federation of Small Businesses), 30% of respondents noted that they couldn’t understand their policy. Additionally, one in six had been forced to switch their cover due to availability or price, but they’d had to take a cover reduction. SMEs and VSMEs are cutting costs in order to pay for their insurance, highlighting a recognition on their behalf of its value and importance. This should be reflected in how brokers and insurers support small businesses, particularly during this period of immense economic turbulence. A key means of doing so would be to streamline the rhetoric of policies and make them more comprehensive to those not literate in more complex insurance jargon. That being said, insurers must not conflate streamlining with oversimplification. In the episode, David notes that insurers are always trying to keep their question sets down when accommodating e-trade. As such, they’re not always able to get the information needed to equip a business with the right cover. The simplification of e-trade systems can mean that small businesses aren’t always asked the right questions, leading them to be directed to a mid-market or branch team who are generally busier with larger, more complicated projects. Yet, if such clients are advised to purchase a potentially unsuitable policy, it won’t be obvious to them. This possibility of misunderstanding can also contribute to the current PR crisis facing the insurance industry, addressed in a recent episode of the podcast featuring Brett Sainty. Time is of the essence for SMEs and VSMs, so the simpler the process of insuring them, the better, provided that they are receiving the right advice. Furthermore, small businesses are always evolving. Detailed question sets are needed to tease out the finer details of each business to ensure that the right insurance policy is purchased. Even as it becomes sw