Wednesday, September 6, 2017

SME, are you well protected?

There are five (5) main category for SME Insurance.

  1. Assets
    1. Fire & allied perils
    2. Burglary
    3. All risks
    4. Electronic equipment
    5. Machinery breakdown
    6. Glass
  2. Revenues
    1. Fire consequential loss
  3. Pecuniary (i.e. relating to or consisting of money.)
    1. Money & Money in Transit
    2. Fidelity guarantee
  4. Liabilities
    1. Public Liability
    2. Employer's Liability
    3. Product Liability
  5. Employee Benefits
    1. Group Personal Accidents
    2. Group Hospitalisation & Surgical
    3. Workmen Compensation (foreign workers)
Fun Facts [boring to read]
  • Average of RM400 million in fire claims is incurred every year, industry wide.
  • SME insurance provide SME an Immediate Fund Relief upon coverage confirmation, up to 50% provisions for working funds of the agreed estimate in the event of a major claim.
What are the MOST COMMON SME Claims?
  • Damage to insured property due to fre & perils
  • Burglary & robbery
  • Loss of Money
  • Third party bodily injury & property damage
  • Damage to insured glass and signage.

Still not sure what is SME INSURANCE?

Coverage for Fire & allied perils 
  • protects property against loss or damage by fire, lightning and domestic gas explosion.
  • covers indirect loss proximately caused by fire such as heat damage, smoke damage, water damage by the fire brigade and losses incurred in attempting to check the spread of fire or to save the property.
  • May extend to cover 24 types of perils by paying additional premium. Important perils are....
    • Storm, tempest
    • Riot, strike and malicious damage
    • Flood
    • Earthquake or volcanic eruption
    • Explosions
    • Bursting of pipe and water tanks
Coverage for Fire Consequential Loss
  • Provides coverage against loss of profits or revenue, as a result of interruption in business operations due to fire or any perils insured under the Fire Section.

Coverage for All Risks
  • Provides protection for all risk (direct physical loss and/or damage) due to accidental external causes to equipment, plant and machinery.
  • Cover includes:
    • Fire
    • Perils that are covered in the fire policy.
    • Accidental external damage
    • Burglary / robbery
    • Theft (excluding theft by deception/cheating)
Coverage for Burglary
  • Protects property against loss or damage due to burglary or robbery whilst contained within the premises.
  • Types of cover:-
    • Burglary - cover theft due to actual forcible and violent entry into the insured's premises
      • Visible marks or physical damage to the exterior of the premises made by tools, explosives, electricity, chemical etc must exist.
    • Robbery - cover the insured property against violence inflicted upon the insured or by putting the insured person in fear of violence.
Coverage for Money
  • Provide protection against loss of money/securities as a result of burglary or robbery.
  • Cover includes:-
    • Robbery with the premises
    • Safe burglary - to pay for loss of money and securities from within the vault or locked safe or locked cash register or locked drawer or locked steel cabinet by burglary or attempt thereat.
    • Robbery outside the premises (Money In Transit)
Coverage for Glass
  • Provide coverage for breakage of glass/signboard or by chemicals accidentally or maliciously applied.
  • Cover includes:-
    • payment of repair or replacement of frames,
    • payment of installing temporary plates.
    • payment of removing or replacing any obstructions other than window displays when necessary in replacing such damaged glass, lettering or ornamentation.