Research commissioned by Allianz Commercial has identified inflation and the cost of living, the state of the UK economy, and cash flow as the top three threats to SMEs. The insurer also highlighted the top three specific business challenges as energy bills, competition and the late payment of invoices.

Alex Ktenidis, director of digital trading at Allianz Commercial, said: “SMEs are clearly facing extremely challenging times so it’s understandable that business owners are looking to save where possible. Having the right level of insurance protection is crucial and brokers play a pivotal role in assisting small business owners to fully understand which insurance cover and indemnity levels are needed.”