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10 Ways on How Microinsurance Can Help SMEs

There are many ways to protect your business, whether you’re a small-time startup or a big time enterprise. The ever-changing economic growth brings countless possibilities and effects towards businesses nowadays that even owners and analysts are lost within the confusing numbers of profit and gain, in short, they are not able to predict whether their ventures would be going in the right path or otherwise, bringing in more risks than ever. With this in mind, it is only appropriate that you avail microinsurance for your own livelihood, in order to add that extra layer of protection to your investments. You may ask then, how can microinsurance help my SME venture in the long run? No worries, here are a few examples.

1. Microinsurance is a lot more affordable than any other types of insurance.

In spite of the fact that this would still depend on your skill to shop for a better deal and coverage, microinsurance is known to have lower cost than most insurances. This may be due to it being mainly offered to Small and Medium-sized Enterprises or Small and Medium-sized Businesses whose personnel numbers fall below certain limits.

2. Microinsurance provides alternatives for small-time and struggling businesses.

With the help of microinsurance, the poor can use their stocks and not the high valued collateral or land titles that they normally need to acquire money for their business. Gone are the days in which they’d have to sell their own land in order to gain capital for their ventures, or make up for its loss of profit.

3. Flexible use of money and investments.

Health is wealth, as they say, and the smaller the business is, the harder one should work in order to maintain and grow their income. However, if one were to fall ill due to fatigue and other factors, microinsurance would ensure that they can be provided with money for health, meaning the money meant for investment will not be channeled out for treatment and medication.

4. Venture into agricultural business.

Agriculture may be considered a risky business. However, other developing countries had developed what they call the weather index, a microinsurance variation purposely meant for farmers. With this variation, farmers can borrow money for either directly investing into their farms or any other initiative and settle the loan when their produce makes profits.

5. Microinsurance tackles property damages.

If your business involves a pretty little stall or an impressive four-corner spot, then chances are you may want to have it protected from uncontrollable forces of nature such as storms. Luckily, microinsurance includes property damages to their coverage, meaning that whatever destruction your business spot undergoes, you wouldn’t have to worry much about the repair expenses, as it is definitely part of the coverage.


6. Business microinsurance involves protection from burglary.

We commonly hear of news regarding crooks and thieves raiding small time businesses in order to get an easy score. Yes, it is a horrifying perspective into the safety of business men and their ventures, but one should not be too scared, for business microinsurance includes coverage against burglary and theft.

7. Some business microinsurance includes AMR (Accident Medical Reimbursement) coverage.

Commonly referred to as ‘AMR’, the Accident Medical Reimbursement is a way of ensuring that the financial impact of an accident is limited and the injured person can recover safe in the knowledge that his medical expenses are being taken care of. In such case, you would never have to worry about accidents happening during business hours, as this is included in your microinsurance coverage.

8. Microinsurance also covers accidental death.

Knock on wood, but if such were to occur within your business, microinsurance would ease up the expenses (especially as you’re running an SME) as this is definitely part of the premium/coverage. This is one part of the deal which no business owner would ever want to experience, whatsoever, but at least, it orients everyone about the possible risks expected in the job (depending on the type of business).

9. Dismemberment/ Permanent Disablement

As with accidental death, this is another type of situation that no business owner or employee would ever want to experience. In spite of that, this microinsurance feature must be set into place, to ensure that your employees would never have to fear about the insurmountable expense that goes with a high-risk job and probable cause of accident.

10. Business microinsurance features payroll coverage.

Basically, the usual process is: An employee authorizes his or her employer to deduct insurance premiums from his or her paycheck. The employer then sends the amount deducted on to the insurer periodically. As with the other work benefits, this would ensure that your employees would experience the fruit of their labor.

With all of that being said, you’re probably wondering where to find a microinsurance that consolidates all of the mentioned features. No need to look further, as with Cebuana Lhuiller’s NegosyoCARE, you are surely in the right hands. Identified as a Personal and Property Insurance specifically designed for clients with micro, small, and/or medium enterprises or businesses, it covers property insurance, burglary and robbery, accidental death, permanent disablement and dismemberment, accident medical remibursement (AMR), and money, securities, and payroll coverage. With all of that, you are greatly secured in your venture.

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