If you’re running an SME in 2025, the chances are you’ve heard of “embedded finance”. This is a concept that’s been rapidly gaining traction over the last ten years, especially as businesses look for ways to streamline their operations and reduce costs.
At its core, embedded finance refers to the integration of financial services directly into non-financial products or platforms. This means that, as an SME owner, you can offer financial services to your customers or employees without needing to be a financial institution.
For those just starting out on their SME journey, however, there are certain subsets of embedded finance that you might not have heard of. One of these subsets is “invisible protection”, which can also be included in products or platforms without requiring extra action from the user.
With the financial landscape as it is in 2025, this can be a game-changer for new companies looking to make an impact, especially considering the growing complexity of risk management and the increasing costs associated with it.
But what does “invisible protection” mean exactly and how can it help your business move forward?
Invisible protection refers to the seamlessly integrated insurance risk management services that are automatically included in products or platforms. To give an example, one of the most common types of insurance in the US is workers comp insurance – which refers to coverage that protects employees who suffer work-related injuries or illnesses.
Ordinarily, workers comp insurance for small business owners must be sought after, with business owners applying for coverage, choosing an insurer, and managing claims and premiums separately. With invisible protection, however, this type of insurance is automatically integrated into a platform the business is already using.
Let’s say you’re using a payroll or HR software platform that automatically includes this insurance as part of their service. When you onboard employees and start processing payroll, the platform will automatically calculate and add the necessary workers comp coverage without you having to manually sign up for a separate insurance policy.
Put simply, the coverage is built directly into the payroll system, which gives you the space to focus on running your business rather than getting bogged down by insurance paperwork and administrative tasks.
This can help SMEs in a variety of ways. As we’ve just mentioned, there are a lot of things to think about when you’re starting up a business, but invisible protection can give you the means to focus your mind and prioritise growth and innovation.
It also builds a stronger foundation for risk management. Despite the numerous challenges that businesses face in the US – including cybersecurity risks and economic uncertainty – a significant number of businesses either lack insurance entirely or are underinsured, with some estimates suggesting between 29% and 40% of SMEs have no coverage.
Invisible protection can be the key to solving this, as it removes any friction and complexity that might be associated with obtaining insurance, and embeds essential coverages into the tools SMEs already use.
Lastly, invisible protection can enhance customer trust. When customers know that a business has safeguards in place – such as insurance covering product deliveries – it helps to build confidence in your brand, and inspire loyalty down the road. Even if that protection is happening behind the scenes, the reliability and professionalism it signals can set SMEs apart from competitors and foster much stronger customer relationships.
Whichever way you look at it, invisible protection represents a powerful shift in how SMEs can access and manage insurance. By embedding critical coverage directly into the platforms they already rely on, you have the chance to not only save time and money, but ensure you’re protected from day one without even having to think about it.
This is a smarter, simpler approach to business insurance that perfectly aligns with the fast-paced, resource-conscious reality of running a company in 2025. Believe us when we say that, in order to keep up with competitors, you’re going to have a lot of things to think about! Thankfully, invisible protection will give you the space, time, and convenience to do just that.