About 20% of SMEs in New Zealand are considering increasing their Business Interruption (BI) cover, a survey of more than 600 policyholders by Vero has found.

At the same time, the poll finds 10% are thinking about decreasing their BI cover.

Vero says the findings will help it work with brokers and advisers to offer a compelling proposition to SMEs, and recommends business owners consider seeking expert advice.

“Cancelling a policy might cut some costs in the short term, but it can come back to bite you,” EGM Customer Experience Mark Wilkshire said. “Having insurance is vital in building a financially resilient business.”

More than two-thirds of the SMEs surveyed reported a revenue hit due to the COVID pandemic, and business owners were twice as likely to be impacted by financial vulnerability compared to householders, with 39% of business owners saying their household is now struggling to make ends meet, compared to 21% pre-COVID.

Vero’s support options for its SME customers include payment assistance options when their policies renew, flexible payment terms and adjusting excesses. It says SME customers can access this assistance by reaching out to their insurance broker.

Suncorp NZ has created a $NZ2 million ($1.87 million) hardship fund to assist Vero and Asteron Life customers who are experiencing financial pressure as a result of COVID-19 to maintain their insurance cover.

“Our concern is that some business owners may not be connecting with that support,” Mr Wilkshire says.

The findings come ahead of the full 2020 Vero SME Insurance Index for New Zealand, which is to be released next month.