What Is SME Package Insurance?

What is sme package insurance & why is it a “must have”

SMEs, or Small and Medium Enterprises, play a key role in the UAE’s economy. They employ over 50% of the local workforce. We all count on the vital products and services from butchers, bakers, cafeterias, clinics, supermarkets, and salons. Many of us might even work at one! Running an SME, big or small, requires inspiration, hard work, time, and money. So, it’s vital to protect those investments!

What is SME Package Insurance?

SME Insurance, or SME Package Insurance, is a commercial policy. It protects small and medium enterprises from common risks in one easy package.

These usually include:

Property Insurance: Covers buildings, contents, stock, and equipment against damage, loss, or theft.
Liability Insurances: Includes Workers’ Compensation, Public Liability, and Products Liability.
Money: Covers cash on the premises or in transit.
Goods in Transit: This covers items moved by road from locations such as shops or warehouses.
Employee Dishonesty and Personal Accident: Important coverages to consider.

Some insurers have dedicated policies for specific sectors. These cover areas like education, healthcare clinics, and retail insurance. These policies work as a package. They include various insurance plans tailored to meet the unique needs of these businesses.

Why should I have it?

Whether you run a start-up or a long-standing company, losses or interruptions can have a big effect on your business. Building a business takes time and money. Most small to medium enterprises can’t afford that. In addition to the money lost from damaged or lost items, there are “invisible risks” to consider. These risks include liability to employees from Workmen’s Compensation. They also include liability to customers or visitors from Public Liability. Keep in mind other effects, such as disruptions to business, lost profits, and damage to reputation. A good SME Package Insurance protects you. If you face different types of loss, you get expert help to manage the situation. Plus, you receive financial support to cover your losses.

What’s covered under an SME package insurance policy?

An SME Insurance policy is a “package” in that it offers several types of cover under one policy or product. It provides flexibility and affordability. You get all the essential commercial insurances for your business. Plus, you can choose the level of cover you need.

In the UAE, especially in Dubai, most people rent their business spaces. So, they are considered tenants. The landlord handles insuring the building so that they may pass that cost to you. But, as an SME owner, you should still think about covering your contents, stock, and money. Also, consider liability for your customers and employees. This way, you’ll stay protected and follow laws and regulations.

Key Features and Benefits offered by SME Insurance policies

So, what does such a policy provide in terms of main benefits? There are likely some obvious ones, but many may be new to you. We’ve summarised the key features below:

Contents: No matter if you have a shop, office, salon, or cafeteria, your business needs basic items. These items help you operate smoothly and support your customers.
For example, offices will have computers, desks, and chairs.
Shops will have:
- Shelving
- Racking systems
- Cash registers or electronic point of sale devices.
Protect these items from risks like fire, water damage, and theft.
Stock coverage: Is vital for retail businesses. It helps you keep trading even after a loss. A Retail SME insurance policy covers stock in different ways. For instance, it protects stock during road transit between locations. It also covers stock in the shop against common risks like fire and water damage. You also get coverage for stock in freezer or chiller cabinets. This protects against appliance failure or power outages. We call this Deterioration of Stock cover.
Business: Interruption, also known as loss of profits insurance, helps your business recover. It compensates for profits lost due to an insured event. It also covers extra costs needed to rebuild your business.
Public Liability: This important coverage safeguards you from legal claims. It keeps your customers, clients, and others safe from accidents while they are at your business.
It protects you from loss or damage to property owned by customers, neighbours, landlords, and more. This cover is legally required. It’s important to know that it’s standard in these package policies.
Workmen’s Compensation/Employers’ Liability: Employers must take care of their employees. If they have an accident, get hurt, or fall sick at work, this key insurance will help them.

Additional Services & Added Value Benefits

SME Insurance offers a wider range of covers and add-on benefits. These vary by insurer. These include covers such as:

Employee Dishonesty: Protecting against fraud committed by employees.
Personal Accident: covers you and your employees in case of death or permanent disability from an unforeseen accident.
Money: Safeguarding your money from loss or damage in daily business tasks.
Electronic Equipment Breakdown: Get coverage for your equipment if it breaks down. This includes costs for repairs, replacements, and important extras.

What are the key areas SME insurance doesn’t cover?

We want to assure you that more is covered than not. But, like many insurance products, SME Insurance doesn’t cover all situations. We should note that the policy typically will not include some losses or costs.

Typical Exclusions

SME Insurance policies are standard Commercial Insurance contracts. Most Insurers usually think alike about the risks they want to exclude. Common examples include:

Your belongings and equipment can suffer from wear and tear. This includes dents, scratches, chips, discolouration, or holes.
Loss or damage from a slow cause can be tricky. For example, a tiny leak in a water pipe can lead to dampness. Over time, this dampness can damage a wooden floor, causing it to rot and eventually collapse.
Costs for improving your business premises after a loss won’t be covered. Insurance aims to restore you to your previous state. Any upgrades are considered “betterment” and are not eligible for coverage.
Loss of items from “walk-in” theft occurs when a customer steals something from a store. For example, they might take a bar of chocolate.
Any decline in an item’s condition or age that lowers its value is called depreciation. This can also include issues like corrosion or rust.
You won’t get paid for lost profits unless they come from an insured event. For example, if trade declines, that loss isn’t covered.

So, what should I do to protect myself against these excluded risks?

Consider each non-insurance area closely. Then, create a strong contingency plan to manage your risks. For example:

Installing CCTV can stop thefts and provide key evidence against thieves. It also protects you from Public Liability claims if someone has an accident or gets hurt on your property.
Employing a dedicated security guard within your retail outlet.
Take out extended warranty insurance to cover your equipment.
Regularly maintain your business premises.
Keeping items clean and in good working order by having them regularly serviced, etc.
Store valuable stock in “less accessible” places. This could be high shelves or secure cabinets. Customers will need to ask for help to reach these items. This keeps the stock safe from theft and protects it from water or pest damage.

How can I get the best SME insurance, quickly & easily!

SME Insurance is quickly becoming a top choice in the Commercial Insurance market. Many reputable and reliable insurers offer policies. So, it’s a great time to buy. But is it for everyone?

Eligibility

SME Insurance is open to everyone. It’s available for sole traders, partnerships, and bigger businesses with several locations. Insurers usually ask a few simple questions. They need basic but important details like:

Whether you are an owner/occupier or a tenant of your business premises
List all your job duties and business activities. This way, you will have full protection.
- Main registered business address, including GPS/Makani code.
- Details of any other trading locations.
- Alarms are installed.
- CCTV cameras monitor the area.
- Security guards patrol the property.
- Entry and exit points are secured.
How long have you been in business &/or what experience do you have in this sector of industry?
- How many employees do you have?
- Do you hire contractors?
- How do you recruit and select staff?
- Are your employees qualified and experienced?
(Think about salons or clinics where treatments are given.)
What operating procedures do you have in place? Do you maintain good stock control records? Do you have an inventory of your contents? Do you record any on-premises incidents in an accident book?
Whether you have made any claims in the past or encountered any incident from which a claim could arise

Hints & Tips

Many insurers know you may not have security procedures or protections in place yet. You must show that you’ve considered these issues and are committed to acting on them. Not doing this could void any future claims. Even if you skip the insurance, it’s smart to have these measures in place.

Insurance policies are just one protection solution and only operate “after an event”. Sensible risk management works all the time. It can even stop some incidents or losses. So, why not think about how to reduce your chances of claims? This helps your business and lowers your premiums. Low or no claims lead to discounts, showing your business is a “good risk.”

Some good practices for you to consider are:

Keep all your receipts in a file so you can prove the purchase and price paid in the event of a claim for loss or damage to an item.
Get valuable items appraised every few years. This way, they stay properly insured.
Take photos of your items so you have a “picture inventory” per room. This is a great tip in the event of a burglary, fire, or flood, as it’s often hard to remember what we own and where it is!
Always use “wet floor” or “cleaning in progress” signs while cleaning. This keeps visitors, customers, and employees aware. It also lowers the risk of slips and trips.
Assign daily tasks to one staff member and train another as a backup. This ensures that the essential functions are always carried out.
Regularly check your procedures. Make sure your business follows all rules and regulations.

Is SME insurance worth buying?

SME Insurance is an invaluable addition to your essential insurance shopping bag! A small business can lose as much as a big one. The key difference is that larger firms have more turnover and profits. So, a loss hits them less hard. For a comparatively low premium, you can protect thousands of dirhams; can you afford not to?

So, I’m convinced! What’s next?

You could try to get this insurance yourself, but why not simply use our expertise? We partner with the UAE’s top insurers. At InsuranceMarket.ae, we make SME Insurance fast and easy. Just fill out our simple digital Proposal Form. Contact us today and let one of our friendly team members help you secure a deal that suits you best. We make it our business to ensure yours!

1. What is SME Package Insurance, and why do I need it?

SME Package Insurance is a combined policy. It protects small and medium-sized businesses. It usually covers property damage, liability claims, employee injuries, business interruption, and more. It’s all in one simple package. Protecting your business from unexpected risks is crucial. These risks can cause significant financial losses.

2. Is SME Insurance mandatory in the UAE?

Not all SME insurance is required by law. Some parts, like Workmen’s Compensation and Public Liability, may be necessary depending on your business type. Even if it’s not legally required, getting SME insurance is highly advised. It helps safeguard your operations, assets, and reputation.

3. What does SME Insurance typically cover in the UAE?

Answer: A standard SME Insurance policy can include:

Property Insurance (contents, stock, equipment)
Public & Product Liability
Workmen’s Compensation
Business Interruption (Loss of Profit)
Money and Goods in Transit
Optional extras like Employee Dishonesty and Personal Accident

These covers are often tailored to your specific industry—retail, clinic, salon, etc.

4. How much does SME Insurance cost in the UAE?

SME insurance costs vary. Factors include your business type, location, size, number of employees, and any past claims. Insurers also consider your security measures (e.g. CCTV, alarms). Despite this, it remains affordable and can save you from massive losses in the event of a claim.

5. Where can I get the best SME Insurance in the UAE?

You can get competitive SME Insurance quotes from top providers through brokers like InsuranceMarket.ae. Their experts simplify the process. They help you compare policies and customise coverage for your business needs. You can do it all online, quickly and securely.