Small businesses are not as well insured as their owners believe, according to this year’s Vero SME Insurance Index.

Despite 39% of respondents claiming to be knowledgeable about business insurance, the report highlights a series of anomalies.

Some 80% of those who rank “being unable to trade” as one of their top concerns say they don’t have business interruption insurance.

And 80% of those concerned about equipment breakdown don’t think they are covered.

“A major concern is that many SME owners perceive they know about insurance but the reality may be quite different,” says Anthony Pagano, National Manager Commercial Intermediaries for Suncorp Group.

“There is a risk gap. They have major fears about the business failing yet they’re not sure if they have the right insurance cover in place to prevent that failure.

“To put it succinctly, small business owners are confused about how well they are covered by their insurance.”

For the first time in its five-year history, the index surveyed SME owners on their main concerns.

Almost half are worried about increasing costs, while 42% fear an economic downturn and just over a third are concerned about increased competitor activity.

Some 32% of SMEs claim to be concerned about the consequences of being unable to trade for a long period, and 31% are worried about equipment failure or breakdown. Workplace accidents, cyber attacks and being sued are also concerns for many.

“The research shows that small business owners are looking for help in not only making sure they are adequately insured but also in running their businesses,” Mr Pagano said.

“This is a golden opportunity for brokers to be trusted advisers for SMEs.”

More details in our regular bulletin on Monday.