Insurance Policies Required for SME Businesses Operating in Thailand
The SME sector is a critical nerve centre for the Indian economy, owing to it contributing 30% of India’s GDP while turning out a million jobs every year. This Sector is ever expanding and developing in Asian nations such as Thailand.
Most small businesses tend to be entrepreneurial ventures where the promoter has either invested their savings or borrowed funds to start their dream venture.
Due to the relatively small financial status and business size, SMEs are often exposed to internal risks. Often the employees of SMEs are not protected with adequate health coverage and divisions of the business are also not protected with the necessary policies, such as business interruption, fire etc. Usually due to thin margins and sometimes awareness of available insurance policies, business owners often aren’t covered properly. Though not required by law, having the correct coverage across your SME business for your assets and employees you can be a reassured that your covered in the event of any unforeseen circumstance.
Why is insurance essential for SMEs?
1. Protection during cash flow crisis
Due to their limited cash flow source, SMEs are prone to unforeseen financial risks that could harm their operations and ability to pay their employees and grow in the market
2. Risks due to third parties
Financial losses due to unexpected events such as explosions, fire, natural calamities, riots, theft, etc., could even potentially lead to the business’s downfall.
3. Protection from legal liabilities
Fending legal proceedings is pricy, especially for a small business that could already be burning through its proprietor’s life savings. It is vital that they are able to pay for any damage the employees or the company has caused to their customers.
Here are some of the insurance covers that are a must-have for all small businesses today:
Business Interruption Insurance: If the business ends up getting shut down for a short span oftime due to unforeseen externalforces,this insurance will make sure to pay the lostincome, and the business stays afloat during the crisis.
Employee Benefits (Group Health): If a work-related accident renders an employee unfitto work, insurance will help protect the workers this incident affects.
Machinery & Equipment Insurance: Computers, electrical/electronic, and mechanical equipment are bound to wear & tear, causing repairs. This insurance can help your business from the cost these damages bring about.
Office Insurance: This insurance offers comprehensive coverage for threats that affect the office operations’ impact and provides financial aid against any damages to the building structure and the contents within.
Liability Insurance: This insurance protects the business in the event of property or bodily damage to the workers or customers that visit the company. While businesses with rare personal visits may choose to omit this insurance since the chances of an injury on their property are remote, businesses with regular foot traffic, such as retail stores or warehouses, should consider this an essential part of their insurance policy
The above are the most common policies that an SME business will have as a minimum, more extensive is available together with specialist policy to provide protection across all critical aspects of your business.
