SMEs have fared better-than-expected with the business fallout from the pandemic, according to BizCover and Vero.

BizCover, a SME insurance specialist, says enquiries are 11% above pre-pandemic levels while new business sales are only 3% below the February baseline, a dramatic improvement from the lows of early April.

CEO Michael Gottlieb says there was a noticeable bounce back as COVID-19 restrictions began to be eased. Cancellations normalised, which showed the “perseverance and industrious nature” of small businesses finding ways to keep trading, he said.

“Cancellations began to return to normal levels and enquiries and new business clients showed signs of an uptick.”

A high level of cancellations peaked at 83% above BizCover’s normal rates just prior to Easter as businesses were forced to close their doors. Enquiries fell 41% while new business clients fell 53% below baseline levels at their lowest point during Easter.

BizCover has been tracking enquiries, new business clients, cancellations and renewals across the SME insurance market on a daily basis since the start of the crisis in February.

This “COVID-19 SME Business Impact Index” reveals the small business sector is showing positive signs of growth, despite economic forecasts predicting a 10% contraction in the first half of 2020.

Meanwhile a survey by Vero showed most SME owners and managers have not changed or cancelled their business insurance to cut expenses, even though their revenues have taken a hit from the virus-induced economic slump.

The survey found about two-thirds of the 500 businesses polled in the 2020 SME Insurance Index Pulse Check have seen falls in revenues, some by more than 50%.

But 85% have kept the cover they had before the economy began to stall in March.

Asked if they have contacted their brokers for advice, 68% say they made the first move to do and 32% said their brokers took the initiative to reach out.

About 84% of the SMEs whose brokers were proactive say they were satisfied with the service, compared with just 58% who had to make contact first.

Vero EGM Intermediaries Andrew Mair says the survey findings illustrate the crucial role brokers play during times of economic distress.

“Many SMEs are facing challenging times and understand that reducing insurance cover can be a big risk,” he told insuranceNEWS.com.au. “Brokers should work closely with their clients to understand their individual situation and support them through the next stages.”