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A proper insurance and risk management scheme developed by insurance companies for small and med-sized businesses may significantly influence profitability, stability and growth of a small business. At the same time, small businesses do not necessarily generate a large bonus revenue, causing them to neglect specific risk management work for small business. The main goal of this paper is an attempt to achieve more detailed information on the specific aspects of insurance companies’ work with small and medium sized businesses. Key words: insurance, risk management, small and medium sized businesses. JEL codes: G22, D 81.