Are you concerned about the risks associated with operating your own business in the UAE? Here’s how you can protect your business, employees, and your revenue, all under a single policy.

The Benefits of SME Package Insurance in UAE

SMEs are a major part of our local economy and you probably come into contact with one every day. SMEs are responsible for creating jobs, generating revenue, and driving innovation. However, these businesses are also vulnerable to risks such as theft, fire, and other disasters. SME package insurance is designed to provide comprehensive coverage that can help protect businesses from such risks.

Quick Read Section

• SME package insurance is a comprehensive business insurance plan designed to safeguard small and medium-sized businesses from typical risks under a single policy.
• SME insurance combines coverage from various policies into one umbrella package, providing UAE businesses with the necessary coverage they need.
• Package insurance policies typically have many covers, including liability insurance, workmen's compensation insurance, and property insurance, among others.
• SME insurance packages can be customized to cover risks specific to business sectors. E.g.: offices, retail outlets, restaurants etc.

Small and medium-sized enterprises (SMEs) in the United Arab Emirates (UAE) are increasingly turning to SME package insurance for better protection against risks. This type of policy covers a wide range of risks, including property damage, business interruption, public liability, and workmen’s compensation.

By purchasing this type of policy, SMEs can ensure that their assets are protected from any potential losses due to unexpected events. With the right SME package insurance in place, business owners can rest assured that they are covered for any events that may arise in the course of their business operation.

SME Package Insurance- What does it mean?

As the name suggests, SME Package insurance is a ‘package’ insurance plan designed to protect small and medium-sized enterprises from common risks under a single policy with a single expiry date. It involves coverage from multiple policies encompassed into a single umbrella product with the aim of offering businesses in UAE the required coverage they need.

SME Package insurance policies are mostly customized in nature and include multiple covers such as Property Insurance, Workmen’s Compensation Insurance, Liability Insurance, etc. Businesses can also get package insurance policies with tailored coverage based on the industry they operate within.

Types of SME Package Insurance Policy

A few of the common types of Package insurance policies are:

• Office Package Insurance- This includes coverage for all the risks that an organization is likely to encounter under a single policy.
• Retail Package Insurance- This package policy is aimed mainly toward retailers, shop owners, salon owners, supermarkets, and other small-sized establishments.
• Restaurant Package Insurance- This policy is intended for cafes, restaurants, and other establishments that serve food and beverages.
• Educational Institutions Package Policy: This policy is intended to cover risks faced by schools, colleges, and other educational institutions.
• Package Insurance for Clinics- The policy focuses on risks faced by clinics and other medical facilities.

What is included under an SME Package insurance policy?

SME package insurance provides comprehensive coverage for risks faced by businesses in the UAE. It covers a wide range of assets including property, equipment, stock, and provides cover for liabilities incurred. Additionally, it can be further extended to cover various other risks.

SME Package insurance policy mainly includes:

• Equipment Coverage- Whether you run a store, office, or cafeteria, you will need certain basic equipment to manage your operations and serve your clients such as computers, cash registers etc. SME insurance ensures they are adequately shielded from hazards including fire, water damage, and theft.
• Stock Coverage- This is a crucial cover to have if you own a retail business. Stock can be protected against fire, theft, and also deterioration due to appliance failures.
• Business Interruption Coverage- This cover, also known as Loss of Profits insurance, helps your company get back on track by compensating profits lost as a result of business interruption due to the occurrence of an insured event as well as any additional costs for your company's reconstruction.
• Liability Coverage- This coverage protects you from legal liabilities resulting from death, injury, damage, or loss to property of any third parties during business operations.
• Workmen’s Compensation Coverage- Expenses due to accidents, illness, or death suffered by employees while performing tasks associated with their work are covered under this policy.

What are the exclusions under an SME Package insurance policy?

SME Insurance, like most insurance products, does not cover every scenario. It should be noted that some losses or expenses normally are not covered by the policy such as:

• Damage to equipment or stock due to wear and tear
• Any expenses you incurred to upgrade your business location after suffering a loss
• Any conditions affecting an object's worth such as corrosion, rust, etc.
• Profit loss that is not directly connected to a loss brought on by an insured hazard or occurrence (such as profit loss following a fall in business) is not covered.

Is SME package insurance worth it?

The advantages of purchasing package insurance policies include cost savings, flexibility, ease of use, and better coverage. With package insurance, businesses can save money by bundling different types of insurance into one policy at a lower rate than what they would have got if they purchased each policy separately. Additionally, it offers greater flexibility as businesses can customize their policy to cover any number of risks that they may face. Furthermore, package insurance is easy to use as it requires only one application process and one payment for all the different types of coverage included in the policy.

This type of insurance policy can provide peace of mind to business owners by ensuring that they have the financial resources to recover in case of an unexpected event.

What are the factors that affect SME Package Insurance premiums?

SME Package Insurance premiums depend on

• Whether the policyholder is the owner or tenant of the business property
• The business of the policyholder
• Addresses of business locations
• Details of security devices installed at business premises
• Number of employees
• Details on operating procedures
• History of previous claims

SMEs are typically more susceptible to financial risk due to modest cash flows and capital sources compared to large organizations. A slight financial crisis might disrupt operations and possibly have an influence on employee pay, not to mention how it would damage future growth potential. Due to all of this, financial risk protection is crucial for any SME operating in an uncertain environment.

SMEs are protected by Business Insurance policies from unpredictable occurrences like fire, rioting, theft, explosion, disasters, and more. These plans offer compensation for the loss and failure that a company might suffer from such unanticipated risks.

If an SME is engaged in a costly legal dispute, it may need further assistance. For a small company, finding money while dealing with a challenging scenario can be quite tough. To create a solid foundation for the firm in the long run, it is vital to have enough protection from legal obligations. SME insurance guarantees lower liability costs and aids in the organization's rights protection.

With package insurance, you receive an array of insurance policies that can cover everything from commercial property, liability, and worker’s compensation to fidelity guarantee and money insurance.

Our insurance brokers will find the most specialized package policies available to protect your business from losses and liabilities, based on the industry you operate in. It is a smart choice to package all your insurance needs together to ensure you and your business are protected. Protect your employees, your hard-earned income & your business under one SME package policy.

Contact us today for all your business insurance needs!