SME Insurance: Everything You Need To Know

The Insurance industry is a massive industry covering many spectra ranging from marine insurance, fire, auto, oil and gas insurance, home, businesses and so on. In this topic, we discuss another of insurance’s broad topics, Small and Mid-Size Enterprise (SME) Insurance.

What is SME Insurance?

They are insurance plans that cover for SMEs. To better understand this, a definition of SMEs is explained. Small and mid-size enterprises (SMEs) are businesses that accrue and maintain revenues, assets or number of employees below a certain threshold.

The definition and categorisation of SMEs will vary according to different countries. SMEs are regarded as the backbone of any economy. They outnumber large businesses and are responsible for a large portion of employment. They are usually entrepreneurial.

Benefits of SME Insurance

Despite the advantages SMEs play for the economy, many SMEs do not have a plan in place for worst-case scenarios. This insurance helps prevent unexpected business closures. The following explains the benefits of SMEs.

  • Theft

Small business insurance cover for the cost of good or equipment stolen. If for unfortunate reasons a break-in occurs on your business, your insurance policy will cover the cost of replacing the stolen property. Compensation for the stolen goods or property which can prevent your business from going bankrupt.

  • Natural Disasters

The cost of rebuilding your business after natural disasters such as floods can be devastating to small SMEs. By taking SME insurance, you’ll be protecting your assets and inventory towards unforeseen circumstances. With this insurance in place, replacement cost is well taken care of, and you can be up and running in no time.

  • Loans and credits

Some SME insurance plans offer businesses the option of applying for loans for their businesses using their enterprise as collateral. An opportunity such as this comes in handy when a company is going through a rough patch. A policy that gives access to loans could save a business from collapse and bankruptcy.

How and where to get SME insurance

In Nigeria, some insurance companies cover SMEs. They offer SME Insurance such as AllianzSME insurance which covers the enterprise entrepreneurs, employees, the assets etc. Their offers are competitively priced and designed for SMEs to cover significant business risks such as fire and burglary, property loss and damages and so on.

LeadWay Insurance also covers SME insurance with comprehensive plans that include your business and its employees.


Since there isn’t a unified definition of what SMEs are, before you take SME insurance for your business, employ the services of insurance brokers who specialise in small and medium enterprises. They will explain to you what your business needs and proffer the best deals fo your selection.

You also need to understand the underlying conditions of the SME contract arrangement and be sure to abide by the guidelines stipulated in the contract. This will help you understand how much risk your business is exposed to as well as ensuring a seamless claim experience in the event of loss

Planning your SME business with SME Insurance can play a huge difference in having a successful business and losing your business in a flash.

Categories: Business Insurance