As summer gets underway, nearly half of small and medium-sized enterprises (SMEs) across the UK report that this is their busiest trading period, yet many may not be adequately insured to match the seasonal uptick in activity.
According to new research from Allianz UK, 45% of SMEs say summer marks their peak business season. Winter was cited as the next busiest time but by a much smaller share of respondents. The trend is particularly pronounced in the North East, where 58% of firms report a rise in activity during the summer months, while businesses in the East Midlands (37%) and Scotland (38%) were the least likely to report a summer surge.
However, despite being aware of the seasonal demand, a significant number of businesses are not adjusting their insurance coverage accordingly. One-third (34%) of SMEs that experience fluctuations in trading volumes say they do not revise their insurance levels to reflect the change.
This oversight could leave businesses exposed. For example, companies that increase stock or expand operations to meet seasonal demand may find their insurance coverage insufficient in the event of a claim.
“Underinsurance is a real concern, especially during peak trading periods,” said Alex Ktenidis, head of Digital & ALP at Allianz UK. “We encourage SMEs to take a closer look at their policies to ensure they have adequate cover. Adjusting insurance to reflect increased stock levels or operational changes can help businesses better manage risk and avoid potential financial setbacks.”
The research also shows that 26% of SMEs report no seasonal variation in business activity, while the remaining responses were spread across autumn and spring, each cited by 8% of businesses as their busiest period.
Allianz’s findings underline the importance of regular policy reviews, particularly for SMEs in sectors such as retail, hospitality, and tourism, where seasonal peaks can significantly alter risk exposure.
What are other ways the hot summer months impact your clients’ insurance coverages? Please tell us below
