The annual contribution of medium, small and micro enterprises to GDP is more than 37%. The sector has a market opportunity exceeding $40 billion and employs more than 11 crore people all over India. Considering that SMEs form a major sector in the country today, they need adequate financial protection and boost. SME insurance can provide this protection to these businesses.
How Can Insurance Financially Protect SMEs?
SME insurance allows small and medium size enterprises to protect themselves against losses they incur from daily business activities. Such insurance covers different risks ranging from business interruption and property damage to employers’ and public liability. Whether you run an organization with several offices or are a two-partner team, this plan helps cover your various business requirements. For instance, you can get business insurance of the following types:
- Group Health Insurance: It finances the medical costs incurred by your employees when they are hospitalised or fall seriously ill.
- Fire Package Policy: It financially protects your business and its assets from an unexpected breakout of fire.
- Workmen Compensation: This type of insurance offers medical benefits and wage replacement to employees injured during employment. If the employer neglects this, the employee has the right to sue the employer.
- Directors & Officers Liability: One who serves as an officer or a director in an SME can be financially protected by this kind of insurance if the person is sued. It sometimes even covers the costs (like legal fees) that the enterprise may incur due to the suit.
- Group Personal Accident: It covers accidents of both the employees and the employer. The cover is available in the case of the insured’s disability or death.
- Trade Credit Insurance: It helps protects an SME against losses associated with credit risks like bankruptcy, insolvency and protracted default.
Now that you see the various benefits of SME insurance, opt for it to protect your business and the ones who run it.