MECHANISMS FOR SUPPORTING SMALL AND MEDIUM ENTERPRISES THROUGH INSURANCE

Small and medium enterprises (SMEs) are vital for economic growth, employment, and innovation, yet they are highly vulnerable to financial risks. Insurance serves as an essential mechanism for protecting SMEs against operational, property, liability, and business interruption risks. This study explores the role of insurance in supporting SMEs in Uzbekistan, analyzes international best practices, and evaluates mechanisms for improving risk coverage. The research applies both qualitative and quantitative methods to assess market penetration, risk mitigation efficiency, and accessibility of insurance services for SMEs. Findings indicate that insurance enhances financial stability, promotes investment, and facilitates business continuity. Challenges include limited awareness, high premiums, and insufficient tailored products. Recommendations focus on developing SME-specific insurance products, improving regulatory support, and leveraging digital technologies to expand coverage and efficiency.