A tailored insurance strategy plays a crucial role in the growth of the MSMEs. It reduces the risks of uncertainties by managing its cause. Thus, the tailored insurance strategies help the MSMEs continue their business during a problem. This insurance automatically leads to the maintenance of profit for the MSMEs. Insurance on a general level will not be a solution as different MSMEs work with various sectors and have different needs. Sajja Praveen Chowdary, head of Policybazaar for Business points out the scope and need of such insurance strategies. Let us break down more about these tailored insurance strategies below.
How Tailor-Made Insurance Strategies Help MSMEs Grow?
Tailor-made insurance strategies will help MSMEs grow further. Insurance plays a crucial role in covering the risks in MSMEs. It includes affordability, working capital, and access to risk coverage. However, every MSME operates under different circumstances. Thus, they all have different needs. Sajja Praveen Chowdary is in favour of creating customised insurance strategies.
There are a lot of things that affect a business. He gives several examples to explain the benefits of tailor-made insurance strategies. The first one was about unexpected happenings in the industry. There are a lot of things that can lead to such happening. There will be difficulty in maintaining the workforce. Thus, the insurance will help in providing financial support to the business. The workforce will be able to continue their job roles.
If a graphic design firm or any other firm operates its businesses digitally, cyber crimes are always a risk. In case of any such thing, the customised insurance will cover the data restoration and legal costs. Thus, the work from the client will be protected and the MSME will protect itself from the possible loss. This was about customised insurance strategies. If we talk about property insurance, he also points out the benefits of having property insurance. It can protect the property where the MSME runs its operations from loss from theft, fire, natural disasters, or other.
There are also schemes like Bharat Laghu Udyam Suraksha. It is for the businesses under Rs. 5 Crores to Rs. 50 Crores. The benefit of taking this scheme is to have security for the company’s assets in case of uncertainty. It includes major assets like buildings, plants, and machinery and rare occurrences like terrorism and theft. Stay tuned for more information on our website for MSME updates.