For many business owners, setting up a business is a process filled with many uncertainties and risks, let alone worrying about the other risks and circumstances that you’re not in control of.

Businesses are inherently prone to various risks which can range from economic depressions to natural disasters. Having the right insurance cover can allow businesses to function without the fear of losing their investment. However, the topic of insurance can sometimes be overlooked by SME’s, as it’s always a topic of debate for many SME owners if investing in insurance is a viable option.

A recent survey conducted by UAE’s #1 financial comparison site website found that 74% of SME’s have insurance coverage. The respondents also revealed that out of the 74% insured SME’s, 29% have basic mandatory cover, 19% have a cover for office property and 13% are covered under third party insurance.

It was also revealed that 26% of the respondents didn’t have their business covered under any kind of insurance. Out of these 13% didn’t take insurance because of their small business size while others didn’t consider it due to lack of information available and the high cost involved.

[Related: Why SMEs need to take insurance seriously]

Why SME’s should be insured and what are the benefits?

In order for a business to run smoothly without any hiccups, it’s essential for it to be covered under an insurance plan. Several attempts have been made by insurance companies to spread awareness among smaller enterprises. From an owner’s point of view, making do with only what’s necessary and keeping the costs minimum is what matters the most. Business owners put in their time, money and energy into setting up and managing their own business. Having an insurance cover to protect the business from unforeseen circumstances will safeguard their interests, help maintain regular cash-flows and ensure long term success.

What kind of SME insurance plans are provided by insurance firms?

There are several business insurance packages available for SME’s which cover all possible incidents and business risks. Some of the more common insurance covers are:

  • Key-person insurance – Key person’s life insurance  in a business
  • Third party liability – Protects the business against lawsuits
  • Commercial property insurance – Protects the business property against damages caused due to natural disasters and vandalism
  • Trade insurance – Provides coverage for cargo or other aspects of trade flow
  • Product liability insurance – Protects against financial loss due to defective products
  • General liability insurance – Covers workplace accidents, injuries, claims of negligence
  • Workmen’s compensation – Protects employees in case of occupational disease or accidental personal injury arising in the course of employment

Selection of business insurance completely depends on type and size of the business (trade insurance will mostly be preferred by companies that fall under the service sector).

Things SME owners should be aware of when getting an insurance cover

  • Selecting which insurance is right for your business is the very first step. Taking into consideration your business assets, legal limits and liabilities, SME’s can take advice from experts and get the right quote which matches their business needs.
  • Insurance companies provide bundled offers which allow SME’s to select the right package that fits their business needs making insurance more affordable, some even starting at AED 1000 per year which is only AED 83.33 per month.
  • As a business starts growing, so does the requirement of departments that need to be insured. To manage this growth, insurance policies have be re-examined on an annual basis.
  • In addition, getting an insurance partner can play a significant role in complying with important guidelines which have to be followed by businesses in the UAE.

A dedicated section for insurance was launched by in a partnership with Lifecare Insurance. SME’s of different sizes and types can obtain vital information on the best possible insurance plan that fits their business requirements. Several types of covers are available such as workman’s compensation which protects the employees from injuries during day-to-day work and Keyman’s insurance which is specifically designed for the key person in a business.  The sections also include other types of plans such as Shareholder Partnership Protection which ensures continuation of the business. Users are required to fill up a simple form with details of their business and can get a quote within 24 hours.

View SME insurance plans

For every business owner having their business protected is the key to long -term success. It provides assurance and peace of mind against future uncertainties allowing them to focus solely on their company’s growth.