- After having spent years on building your business, it only makes sense to get business insurance to protect your employees and investment
- Business insurance not only protects your company from a business risk of an untimely demise of a keyman and unforeseen issues such as property damage, but it can also improve company’s credibility and boost employee productivity
- UOB is offering a comprehensive business insurance plan to meet the needs of SMEs
Business owners spend years pouring time and money into growing their companies. For many, it is their life’s work, yet most fail to safeguard what they have built. Statistics show that 50 per cent of Malaysian SMEs are completely uninsured, and 85 per cent are underinsured, exposing their businesses (and even themselves) to a variety of risks.
One reason is that many SMEs consider business insurance an unnecessary expense. On the contrary, it should be viewed as an investment for the company’s future. Here are four reasons why insurance can help SME owners protect their brand/s.
#1: It financially protects your business against natural disasters, criminal activity and more
Anyone living in Malaysia understands the occurrence of floods. But perhaps because they are so common, business owners tend to discount the damage it can cause. The floods that occurred from 2014–15, for instance, resulted in well over RM1 billion in property damage. In just one state, it affected over 13,000 SMEs – almost 40 per cent of all SMEs in the state.
Then there is the constant threat of fire. Fire-related property losses were estimated at RM5.2 billion in 2017, and it is the number-one cause of property damage for SMEs. Furthermore, there is also the risk of losses from criminal activity, such as burglary, which makes up a significant percentage of SME insurance claims.
#2: It makes your business more credible
In addition to protecting against damages, business insurance can make your company more credible, increasing your chances of doing business with larger corporations. The right level of insurance gives them greater peace of mind – for instance, damage to their property stored on your premises – that your insurance is there to safeguard against any unfortunate losses.
#3: It supports your business continuity plan
Many SMEs have ‘keymen’ – people who are pivotal to the business. They are much harder to replace than regular employees and are considered major assets to the company. However, they may also be considered ‘contingent liabilities’ because their absence would impact the business. For instance, if something were to happen to a company’s top salesperson, there would likely be at least a near-term downturn in revenue.
This is known as keyman risk, and SMEs that fail to protect against such risk could face major and long-term disruptions to their business – disruptions that could take substantial amounts of money to rectify the problem. Keyman insurance will monetarily compensates the SME if such an event occurs so businesses can return to normal as quickly as possible.
#4: It can boost employee productivity
The more productive your employees are, the better off your business will be. In terms of work attitude, there is nothing better for a business owner than having engaged employees. Research by Gallup found that companies with the most engaged employees saw 147 per cent higher profits as compared to their competition.
To improve your employees’ engagement levels, you need to show them you recognise their contributions and sincerely care about their future. One simple and tangible action that demonstrates this is by providing them with benefits to cover their medical costs, which you can do using a comprehensive plan like Employee Benefits insurance. When they know you care, they will be more willing to give their best to the business.
Protect your business and help it prosper
Business insurance protects against the unexpected, which you can never truly plan for. It shows that you are a serious SME and can even open up further opportunities, especially with larger organisations. Most importantly, it provides your employees with medical benefits which can ultimately lead to greater engagement – and a better bottom line.
UOB is offering a comprehensive business insurance plan to meet the needs of SMEs just like yours. Apply now or contact us to find out more.