Insurance for SMEs- Is it very important for you?

Insurance for SMEs


Insurance for SMEs is now very important as each SME is an enterprise employing not less than 250 people. The SMEs are small in respect to the number of employees and ranges from 10 to 200 persons, while a single owner SMEs are the sole employee with 250 to500 employees. They either produce a single product or offer a single service. Finally, the local SMEs are the small office home office that is in the same district, state or city.

SMEs are important, socially and economically as they represent 99% of approximate 23 million enterprises in the EU and generate around 75 million jobs representing employment of two-thirds. SMEs contribute nearly 80% employment in industrial sectors, while there are some with small outputs as well. A key factor is that they are registered companies or businesses.

The Indian SMEs are growing and a great part of the Indian workforce is employed with them. The SME sector manufactures more than 6000 products and with the online business in surge, it is sure to grown exponentially in the coming years. With such an evident progress also the growth of SME in India is hindered for various reasons such as availability of modern technology, regulations limiting, lack of finance assistance, inadequate infrastructure and risk coverage.

Importance of Insurance for SMEs

The insurance is low among the SMEs, says a FICCI report. The key problem is the mindset that the small businesses give less priority to insurance. It assumes fueling investment in their business growth than prioritizing their protection.

It is important for SMEs to have an insurance as it offers protection from unforeseen eventualities, reduces the unplanned risks cost, empowers business, promotes consistency and business momentum.

Small businesses lack such types of saving funds that can be sidetracked to restore the business in an eventuality. It is now more important to have an insurance plan. SMEs face business ups and downs and so an insurance cover alone can provide them adequate financial support as the need arises.

Support to Insurance for SMEs

Every day, the terrorism acts keeps on increasing. If you own a factory and move in cargo these products, you need to stay highly alert. This inhuman act can be stopped only if you take measures properly.

Natural calamities such as earthquake, cyclone, floods and Tsunami may happen anytime with climate changes. The only way of protect your business and self is with insurance. It can be a life-saver under this situation.

Burglary or Theft for a business is not about lifting precious items. This now includes stealing your ideas, important documents or bulk goods in transit. Ensure these hurdles have less affect on your business. Buy Insurance plans covering theft, robbery and burglary.

A business partner may face death or critical illness leading to financial stress and also bringing down the shutter permanently.  Insure your business and save yourself, your family and your employees.

Fire is a situation that can be saved with good insurance plan. You can spring back to your business with a good insurance plan that keeps a watch even at your back.

Solutions for Insurance for SMEs

Most Indian SMEs restrict acquiring insurance due to 2 key factors mainly, lack of awareness of insurance products  and price sensitivity. However, even if businesses are insured, it is done by compulsion of family, friends or agents.

One thing is sure that there are no strong insurance schemes to lure the SMEs in India. This has to be rectified taking the need of SMEs into concern. India must create plans specific to accommodate their trade areas and issues.

SME owners must be shown the insurance profits. However, the fact cannot be denied that funds are a major problem with small businesses. What is to appreciate is that by ignoring insurance these SME owners are causing themselves and their business long term harm.

This can be resolved only when the insurance providers arrive with SMEs and lucrative plans to buy a plan convincing them and fits their needs appropriately. It should facilitate with enough information and they must understand the policy, the coverage it offers. Realizing the Insurance for SMEs owners and insurance companies have to make that possible as a priority.




Insurancebash  isn’t affiliated with any insurance company. We are simply sharing our opinions and review about the said products. We don’t take any responsibility if you buy these insurance policies.


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