Insurance for small businesses protects the business and business owners against various risks. You can select the SME insurance policy coverage according to your business needs and buy it online or offline.
Businesses, especially Small and Medium Enterprises (SMEs), are vital to any nation’s development. With government initiatives like Make in India and Digital India and several other advancements like expanding markets, advancement in technology and a growing qualified workforce in the country's business landscape, the work environment for SMEs is swiftly changing.
Starting a business requires significant investments; entrepreneurs usually invest their life savings and take additional funding to launch a business. Due to the magnitude of investment, a business is exposed to undue risk if the entrepreneurs do not have a contingency plan to handle the risks associated with the business.
Small business insurance is one of the most essential steps to protect your business against risks and damages. But what is small business insurance, and how can you get it?
An SME insurance policy includes several aspects, such as general liability insurance, life insurance for SME employees, property policies, etc.
Let us learn about SME insurance and how you can buy small business insurance to protect your business.
What is an SME Insurance Policy?
Small business insurance covers an SME business against various risks like risks to its financial assets, intellectual property, physical location, and claims arising out of third-party damages, customer lawsuits, etc.
Businesses must consider the magnitude of risk they are exposed to in various areas of operations and then decide the kind of cover they require for their business. If required, you can seek expert consultation to select the right coverage before you buy small business insurance online or offline.
Types of Small Business Insurance Policies
Here is a list of some of the types of business insurance policies you can buy for your SME business:
General liability insurance to cover third-party damages and injuries.
Professional liability insurance to cover the damages caused when the service is being rendered.
Employee insurance policies to cover expenses towards the illnesses and injuries of the employees.
Commercial insurance to cover the cost of repair and replacement of damaged property.
Product liability insurance to cover damages caused by your products.
Commercial vehicle insurance for vehicles owned and run by the business.
Business interruption insurance to cover losses due to hindrances in the running of a business, like disruption of business operations due to riots or floods.
Benefits of Insurance for SMEs
Small business insurance protects you against the financial losses you may incur during the course of business operations.
A sufficiently insured business has better credibility among suppliers, customers, investors, and employees.
Group policies for employees help in talent retention and build an environment of trust within the organisation.
How to Purchase Small Business Insurance Online?
You can conveniently evaluate and buy small business insurance in a few simple steps explained below:
Step 1: Evaluate your business risks - Before purchasing small business insurance, you must evaluate the types of risks your business is exposed to. This way, you can be sure of getting coverage for your specific risks and also ensure you do not end up paying for unnecessary coverage.
Here are some risks you may want to cover for your SME business:
Lawsuits from customers
Theft, vandalism, fire, etc., at the business location
Make an exhaustive list of the risks you want to cover your business against, and look for a policy that fulfils your requirements.
Step 2: Research for appropriate business insurance policies - Once you have a comprehensive list of coverage you want for your business, you can explore the policies available with various insurance companies. You can talk to the insurer’s representatives in case you need further clarification about a policy you like.
At this stage, you can select a few policies for which you would like to get an insurance quote. You may also use an online premium calculator to get an estimate of the premium you will be paying for the desired coverage.
Step 3: Apply for SME insurance policy quotes - You can request free premium quotes for your chosen policies. For this, the insurance providers may ask you to provide basic information like your business’s annual revenue, location, number of employees, etc.
Once you have the quotes for the selected policies, go through the policy costs, coverage scope, and other features, benefits, and terms and conditions of the policies to choose the most suitable one.
Step 4: Buy small business insurance online - Once you choose the insurance policy you want to buy, follow the buying process provided at the insurer’s website. You can seek support from the support staff of the insurer if you have any questions or doubts. Buying business insurance from a reputed and reliable insurer with a good market reputation is advisable.
Small business insurance is essential to cover your business and yourself against various risks. These risks may include property damage, third-party damage, lawsuits against your business, risks to your commercial vehicles, cybercrimes, etc.
You can also purchase group life insurance for SME employees to cover your workforce and foster growth and trust within your company.