Did you know? According to a study conducted before the pandemic, 50% of SMEs in Malaysia are running their businesses without insurance coverage, while 85% are underinsured. This puts their businesses, including assets, exposed to numerous risks, such as fire.
The statistic is quite concerning as most business owners spent years investing time and money into building their businesses to the level that they are now. Unfortunately, the lack of insurance coverage could harm their business continuity and growth.
No matter how prepared business owners are, there is no denying that every business is vulnerable to physical damage. That, in turn, could result in interruptions to its daily operations.
Hence, having the right commercial property insurance coverage for business premises could make a difference, especially when they must get back on their feet as quickly as possible.
Protecting the physical location with commercial property insurance is vital for SMEs. This type of business insurance helps with premise building, tools and equipment, and other things that could cause minor business disruption or even a major loss of income that will hit you financially!
We know how hard business owners have to work to run their businesses. That is why getting commercial property insurance makes a lot of sense to protect the owners from having to pay the cost of repair or damage out-of-pocket and impact their bottom line.
Commercial property insurance is divided into a few coverages. Aside from fire insurance, the other coverages are optional and can be added on or dropped off.
Fire Insurance
Fire insurance covers physical business premises, machinery, and inventory against the risk of fire, lightning and explosion.
It may also be extended to cover the following, which you can add on when customizing your property insurance:
Burglary
Protection against loss or damage to property and loss of business assets from burglary or an attempted break-in at your property.
Why Do SMEs Need A Burglary Insurance Extension?
The burglary add-on covers your premises against loss and damage due to theft and attempted break-ins and also covers the contents of your business premises.
Money Insurance
Covers losses of money on the premises and also whilst in transit.
Glass Insurance
Plate glass insurance coverage compensates the business for any glass broken or fractured as a result of an accident or unfortunate incident that is not part of the exclusion list.
Public Liability Insurance
As the name suggests, public liability insurance covers legal liability to a third party resulting from accidents that occurred in connection to business operations.
For example, if a patron or customer slipped and fell on your premise and managed to injure himself on your premise, this coverage not only will cover your legal fee, but it also cover the fee if you are sued in a court of law for negligence on your part.
Employer’s Liability Insurance
As a business that may employ staff or employees, this benefit compensates and pays for the cost and expenses of the employees if they suffer from accidental bodily injury or disease in the course of employment.
Group Personal Accident
This add-on benefit is slightly different from the Employer’s Liability Insurance it provides compensation for injuries sustained accidentally by the employee/worker, resulting in the death or disablement of the employee that requires medical and/or surgical treatment.
Electronic Equipment
Covers your computer and electronic devices that are used for business operations, whether items are at work or rest or dismantled, within the premises.
Machinery or Equipment Breakdown
Machinery breakdown includes physical loss or damage to the machinery such as lifts, air conditioners, transformers, generators, fire-fighting equipment and more.
Fidelity Insurance
Fidelity guarantee coverage protects businesses against loss due to the act of infidelity committed by the employees or workers.
Internet Liability or “Data Breach Insurance”
A few business insurers in Malaysia offer internet liability insurance or cyber insurance, a policy designed to help businesses pay for any financial losses or legal liability they may incur in the event of a data breach or a cyberattack.
Why Do SMEs Need an Internet Liability Extension?
By adding on this coverage, it can help cover the cost of notifying impacted customers through mass SMS or email system or running a PR campaign to improve business reputation.
There are also other additional business insurance coverage including Professional Indemnity Insurance as well as Directors & Officers (D&O) Liability Insurance, designed to protect directors and officers against personal liability that they might incur while servicing the organization.
Which SMEs Would Benefit From Getting Commercial Property Insurance?
Frankly speaking, a variety of businesses, including manufacturers, retailers, service-oriented businesses and businesses have buildings, critical equipment and machinery, assets, and businesses with access to suppliers and customers.
It is simply because the main objective of getting business premises covered is to protect business owners from unnecessarily paying for repair and replacement from the profit they made when the premises are damaged.
Need some help or someone to talk to regarding commercial insurance for your business? Try out our LIVE CHAT or schedule a call back from the Cover Buddies website for one of our professional consultants will reach out to you to discuss options.