Friends Life is to extend its group cancer cover policy to companies with 50 employees or more.
When the policy was introduced it was available to those firms with a minimum of 100 employees.
Group cancer cover was launched in January with the company saying that it was likely to have premiums 30% lower in price on a like for like basis.
Staff insured receive a fixed benefit of £25,000 following diagnosis with a cancer covered by the plan.
Anna Spender, head of group protection proposition at Friends Life, said:"The response to group cancer cover has been fantastic but what was really important is that we listened to what intermediaries and our customers wanted.
"We were getting requests for quotes from smaller businesses and weren't able to fulfil those requests.
"It became clear very quickly this is a benefit that SMEs are really interested in and I'm pleased that we've been able to react so quickly."