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Originally published on sme.asia. Read the full article here.
With all the uncertainties of the economy faced during these trying times, wouldn’t businesses want a safety net to fall on? Especially when it comes to untoward incidences which lead to unplanned losses. For most small medium enterprises (SMEs) which are built over blood, sweat and tears, it only makes sense to safeguard all aspects of the business. However, in Malaysia, a huge percentage of SMEs are still either completely uninsured or underinsured. It is a common misconception that insurance coverage is an unnecessary expense and the benefits of a good insurance coverage are often lost in translation.
For business insurance, especially SMEs, there is no one-size-fits-all plan. When a business is paired with sufficient coverage specially tailored to suit the business’ need, businesses can rest assured a holistic protection plan is in place. The key takeaway here is to be well informed on the types of risks out there and how to mitigate them before choosing the correct insurance plan.
“There is no doubt in mind that an insurance company can bring tremendous value to any business because we are there to protect it and financially shield it from untoward incidences. For us at Liberty Insurance, our range of coverage has been well-thought out and is curated to fit the needs of any business regardless of size and nature,” said Liberty General Insurance Berhad Chief Executive Officer, Mr Puneet Pasricha.
He also shared his view that while many other insurance companies could be offering almost the same plans when it comes to SME insurance, the insured should always look out for pointers on how each insurer works, from the start (purchasing a plan) to end (making claims and efficiency of reimbursement). This will help the insured make well informed decisions when it comes to choosing the right insurance plan.
It just does not make sense if a business buys a low premium insurance plan at the cost of troublesome claims, which takes a long time to process. Some scenarios might also involve businesses being underinsured, only to find out at the time of crisis that certain things are not covered by the insurance plan.
It is also a common misunderstanding that a business may be too small to be insured or that there is very little risk to mitigate, hence there’s no need for insurance – which should never be the case.
However, operating without an insurance plan puts SMEs at higher risk as mitigating losses does not solely revolve around flood or fire, for instance. It also protects the insured against long-term revenue loss for businesses which may be the cause of partners or key players within the business drifting apart, for example.
In fact, the risks which SMEs may face are endless. Fraud or dishonest employees may leave businesses in a lurch as the loss of a large amount of money will be hard to recover from. Threats from the public is another risk to consider as businesses may find themselves trapped in a legal battle from a third-party dispute.
“All these risks and so much more should be seriously considered by SMEs because you never know when disaster will strike. Getting insured will also help businesses mitigate risks better because they will be better informed and will be equipped to set up preventive measures specifically catered for their business needs,” said Mr Puneet.
Aside from minimising risks, the right insurance plan can also help the business grow at a healthy pace and increase its credibility within the industry. Having an insurance plan shows strategic future planning and the company’s commitment in ensuring that the business and all its assets and employees are protected.
One such insurance company which has its customers at heart while offering the best packages is Liberty Insurance. With over 44 years of experience in the Malaysian market, Liberty Insurance provides insurance solutions from all-inclusive personal accident and motor policies to legal and business policies that covers legal consultancy services and safeguard financial investments.
