In an increasingly changing and demanding business landscape, risks evolve and multiply, making it essential to have an appropriate insurance coverage. This is especially important for Spanish SMEs, which constitute nearly the entire productive fabric and support a significant portion of the national economy. Despite this, the reality shows a notable gap: 89% of SMEs have a protection gap in insurance, according to the global report “Hiscox Gap Report 2025: The Insurance Gap in Spanish SMEs”, published today to provide an overview of the sector’s insurance coverage levels.
38% of Spanish SMEs lack General Liability Insurance, despite needing it for their type of activity
In Spain, the report reveals that a high percentage of these organizations lack essential coverages for their operations, such as General and Professional Liability or Cyber Insurance, despite their need based on the nature of their business, sector, or how they interact with customers. In this context, it emphasizes that 38% of Spanish SMEs lack General Liability Insurance, despite needing it for their type of activity, particularly due to how they engage with clients (virtually or in person). Additionally, it’s worth noting that 11% of SMEs in the consulting sector do not have Professional Liability Insurance, even though it is an essential coverage for their business.
Meanwhile, the study reveals that only 43% of SMEs worldwide have General Liability coverage, a percentage that drops to 26% among Spanish SMEs. The most contracted insurance policies include Commercial Auto (35%), Personal Accidents (34%), Professional Liability (32%), Cyber Insurance (31%), Multi-risk (30%), and D&O (30%), among others. Moreover, 7% of SMEs report not having any insurance at all.
Review of insurance policies and per-claim limits, an area for improvement for Spanish SMEs
The report also shows that only 1% of SMEs that have increased their revenue have not updated their insurance policies, indicating that nearly all comply with the obligation to notify their insurer to ensure their risks remain adequately covered. However, there remains a significant number of businesses that have not reviewed their policies in several years. For example, 10% have not updated their General Liability coverage in over three years, a figure similar to Multi-risk insurance (12%). Concerning Professional Liability, this percentage jumps to 33%, highlighting a greater lack of updates in this type of coverage.
Additionally, the study notes that, globally, more than half of SMEs have indemnity limits of one million euros or less per claim, which may be insufficient—especially for growing companies. In Spain, the situation is no more encouraging, as only 43% of SMEs have Professional Liability limits exceeding one million euros. For General Liability, the percentage is 44%, while Multi-risk insurance coverage drops to 22%. Furthermore, the study shows that 3% of Spanish SMEs have General Liability coverage limits well below their annual revenue, leaving them vulnerable to major claims.
Concerns about their business keep almost all Spanish SMEs awake at night
Despite this widespread insurance protection gap among Spanish SMEs, small business owners report being highly worried about the risks they face daily. In fact, 95% of Spanish SMEs say that concerns about their business keep them awake at night. Additionally, approximately one in three mentions worries that insurance could help alleviate, such as theft or property damage (39%), cyberattacks or data breaches and inflation (34%), economic downturns (33%), on-site injuries (32%), legal claims or lawsuits (31%), natural disasters (30%), and labor shortages (29%). Only 5% say that no risks or concerns related to their business keep them awake.
“Our report highlights two key aspects. First, it reveals the existence of an insurance gap in Spanish SMEs, a phenomenon that no one has discussed or quantified until now, and which we seek to bring into focus and analyze. Second, it confirms that insurance remains synonymous with peace of mind when managing a business. Certainly, in a particularly challenging environment for the Spanish business sector, SMEs need more support than ever, and they should remember that insurance is there to protect them when they need it most, especially against risks that had previously gone unnoticed,” states David Heras, CEO of Hiscox Spain and Portugal.