Why monthly payments shouldn’t mean lower cover for SMEs.
The rising cost of business insurance is driving more SMEs to rethink how they pay, but not how much they insure.
At Anthony Jones Insurance Brokers, we support recent findings from Premium Credit highlighting a clear shift toward monthly insurance payments. Their research shows that 23% of SMEs switched to paying monthly in the past year, with 1 in 4 doing so to address underinsurance concerns.
Spreading premiums can be a smart financial decision. Reducing cover to spread premiums is not.
As brokers, we see the difference every day.
The Underinsurance Trap
Cutting cover to cut cost? That’s not cost-saving. It’s risk-loading.
Underinsurance remains one of the most critical exposures for SMEs.
There is no upside to knowingly insuring below replacement cost. If a claim occurs, the only certainty is that insurers will not pay out in full where cover is inadequate. When that happens, the consequences land squarely with the business — financially, operationally, and in many cases, legally.
Business owners and directors hold a duty of care to protect company assets. Those with delegated responsibility also hold a duty to fellow directors and stakeholders.
Failing to insure accurately doesn’t cut cost. It transfers cost, directly to you.
Rebuild Cost vs Market Value
The number you insure is the number it costs to rebuild — not the number it sells for.
A common misconception we challenge is the use of market valuations for buildings and property assets when calculating insurance sums insured.
A building’s sale price reflects demand, location, and market conditions. A building’s reinstatement cost reflects materials, labour, demolition, site clearance, compliance, risk, and rebuild from the ground up.
The two figures can differ dramatically. Only one protects you in a claim.
Valuation Support That Matters
Expert reinstatement cost assessments for accurate cover.
To help SMEs insure correctly, Anthony Jones partners with Chartered Property Consultancy BCH. They are specialists in:
- Reinstatement Cost Assessments
- Risk and Asset Valuations
- Cost Consultancy and Compliance
This ensures our clients receive authoritative, claims-defensible rebuild cost figures, not estimates, assumptions, or market approximations.
Insurance Premium Finance
Flexibility in payment, not flexibility in protection.
Monthly premium payments are becoming standard across the SME sector, and the market remains highly competitive on premiums, a trend we expect to continue through 2026.
Whether payments are structured directly with insurers or through third-party premium finance providers, Anthony Jones can arrange both, offering cash-flow flexibility without compromising coverage integrity.
Because the right policy is only right if it actually pays when you need it.
How Anthony Jones Helps SMEs
We work with insurance buyers to balance cost efficiency and coverage accuracy, including:
- Reviewing policy limits to prevent underinsurance
- Explaining cover terms in clear commercial language
- Securing rebuild-based valuations through BCH
- Arranging annual or monthly premium payment structures
- Providing premium finance solutions that protect cash flow, not cut corners
If your sums insured aren’t built on rebuild cost, they aren’t built on certainty. And certainty is the only foundation that matters when a loss happens.
