SME Insurance

SMEs or Small and Medium Enterprises form the backbone of any developed economy. They maybe small in size, but when it comes to nation-building or generating employment, they are at the forefront. SMEs reflect the animal spirit of any nation.

SMEs are exposed to various potential risks because of under insurance and at times no insurance. This is where SME insurance plays an important role.

What is SME Insurance?

SME insurance is aimed at securing the business assets of small and medium sized organizations and safeguards them from various unexpected risks. Whether it’s fire insurance, group policies for their employees, liability against property damage, or insuring other valuable machinery in the company, SME insurance plays a pivotal role.

It enables business owners to run their companies without having to worry about unfortunate events and the risks associated with them. In a nutshell, an apt SME insurance offers end-to-end risk management.

The Importance of SME Insurance

Most small and medium size businesses tend to be entrepreneurial ventures where the owner of the business either borrows money or invests his or her hard-earned savings to start a new business.

Given their relatively small size, SMEs are prone to several risks including the risk of break down, loss of stock, theft or damage. These unfortunate events may cause severe regression in one’s ongoing business and may lead to big losses. In fact, this may even result in the shutting down of one’s business. In such cases, having a suitable SME insurance cover will help in protecting the business from various unexpected events, maintaining regular cash flows, and ensuring success in the long run.

In the UAE, business insurance is mandatory, especially in the free zones. Here are a few free zones operating in Dubai:

• Dubai Airport Free Zone (DAFZA)
• Dubai Multi Commodity Centre (DMCC)
• Tecom Free Zone
• Dubai Silicon Oasis
• Jabel Ali Free Zone (JAFZA)
• Dubai International Financial Centre (DIFC)

Types of SME Insurance

There are several kinds of SME insurance policies available in the UAE.

• Liability Insurance This type of SME insurance policy insures any third-party that is engaged with the organization. This kind of legal liability is generally seen in construction, manufacturing, and warehousing. It includes injuries, diseases, accidental deaths and property damage or loss.
• Marine Insurance Marine insurance covers all expenses incurred due to damage or loss of goods in transit. It covers transit damage caused via channels such as airways, post, sea, roadways, and railways.
• Burglary Insurance Burglary insurance gives financial compensation for any damage or loss caused either to property or any valuable item due to burglary. This insurance policy covers jewelry, cash, and other valuable items.
• Fire Insurance A fire insurance policy covers expenses incurred due to damage or loss of property caused by fire breakouts.
• Cargo Insurance Cargo insurance or freight insurance is a type of SME insurance policy that provides coverage against physical damage or loss to freight, from any external cause, during shipment via air, land or sea.
• Workmen’s Compensation Insurance This insurance policy covers the statutory liability of an employer arising from any serious harm caused to its employees due to an accident that may occur on the job.

Key Features and Benefits of SME Insurance

Following are some of the key features & benefits of SME insurance:

• Risk Management: Covers loss or damage to business assets and properties.
• Third-Party Liability: Protects third-parties associated with the business.
• Lawsuit Cover:Covers the cost of legal proceedings and settlements.
• Protection from Natural Hazards: Covers losses resulting from natural disasters.

Things to Consider Before Buying SME Insurance

A few things need to be kept in mind before purchasing SME insurance online.

• Compare SME insurance plans that are available in the UAE. This will help policy seekers in selecting the right plan that suits their business requirements.
• Examine the business risks that a policy seeker would want to cover before purchasing an insurance plan.

SME Insurance Provider	Key Features
MNC Insurance	Clinicare Educare Food & Beverage Personal Care Employee Protector Office Property Owners Select Retail
Noor Takaful	SME General Takaful SME Medical SME Fleet SME Family
Tokio Marine	Tokio business package Engineering Medical Hotel or Restaurant Package

How to Buy SME Insurance in UAE?

SME insurance can be purchased online, offline or through brokers and agents.

Through Online

In order to buy SME insurance online, the policy buyer can approach aggregator websites such as Autoinsurance.ae that enable customers to compare different plans and insurance companies. Buying online gives the power to the consumer, as the process is transparent and completely unbiased.

Through Offline

There are many insurance companies in the UAE that offer SME insurance. One can purchase a suitable insurance plan by walking into one of their branches.

Through Brokers or Agents

Interested individuals can also purchase the insurance policy through brokers or agents. Although agents may not be able to provide various choices, they help in completing the tedious paperwork.

SME Insurance Claim Process

• Inform the Insurer: If the insured suffers from any kind of loss or damage then it’s his/her responsibility to intimate the insurance provider via call or email as soon as possible. Generally, all insurance providers mention their toll-free number and email address on the insurance policy itself.
• Document Submission: The insured needs to submit all the required documents to process the claim.
• Investigation: The insurance company will then assign a surveyor within 2 working days, to assess the degree of loss or damage. The surveyor also validates the authenticity of the claim.
• Claim Settlement: After the above is concluded, the insurance company will look into the report and process the claim.

How Can Autoinsurance Help?

Since there are various SME insurance providers available, it becomes difficult for the policy seeker to compare and select the best policy. In such situations, Autoinsurance.ae acts as a savior. It is an insurance web aggregator which enables policy seekers to compare different SME insurance policies online, easily and conveniently.

Customers only need to answer a few simple questions, post which they are able to see a list of various SME insurance plans available. Therefore, Autoinsurance.ae saves its customers valuable time and helps them find the most suitable SME insurance plan in the shortest possible time.