Are You Not Covered or Under Insured?

Most SMB business owners believe they are “insured.” The bigger issue is whether they are actually properly protected for how their business operates today.

In practice, many businesses either have critical risks with no coverage at all or they are under insured with limits, endorsements, or valuations that no longer match reality.

Recent industry research found that approximately 74–77% of small businesses are underinsured in some way, despite most carrying at least some form of commercial

insurance (The 2025 Hiscox Underinsurance in Small Business Report).

Another study found that only 13% of SMB owners feel fully prepared for risk exposure (ERGO Business insurance report, April 25, 2025).

For growth-oriented SMB owner/operators, the challenge is usually not negligence — it is complexity. Businesses evolve faster than insurance policies do.

The Two Biggest Categories of Insurance Gaps

1. “No Coverage” Risks

These are exposures where the business simply has no applicable policy.

2. “Under Insured” Risks

The business technically has coverage, but the limits, terms, valuations, or policy structure are inadequate for a real-world claim scenario.

Contact PROTEXA Risk Advisory for a personalized Total Risk Assessment (service mark pending) for your commercial and personal risk exposers and gaps in coverage. We take a consultative approach to diagnosing and assessing risk, then recommending and placing coverage.