Business insurance
What insurance does an MSME or small business need?
Most MSMEs need four kinds of cover: property insurance for the premises, machinery and stock; liability insurance for harm caused to others; workmen’s compensation for the legal liability to injured workers; and, as the team grows, group health and accident cover for employees. Which to buy first depends on what would hurt the business most if it went wrong.
In short
- Property: premises, machinery and stock against fire and other perils.
- Liability: harm caused to customers or the public.
- Workmen’s compensation: a legal liability, not a choice.
- Employee cover once the team reaches an insurer’s minimum.
What should an MSME insure first?
The loss that would close the business. For a factory or warehouse, that is usually a fire or flood destroying machinery and stock. For a service business, it may be a liability claim. Workmen’s compensation comes early for any business with workers on site, because the liability exists whether insured or not.
The core covers for a small business
| Cover | What it protects |
|---|---|
| Property insurance | Buildings, machinery, stock and contents |
| Office package | Several office covers in one policy |
| Liability insurance | Claims by customers or the public |
| Workmen’s compensation | Legal liability for injured workers |
| Group health and accident | Employees and their families |
How can a small business keep insurance affordable?
Insure the right value, and choose deductibles carefully. A sum insured that is too low saves premium today but cuts every claim in proportion. A sensible deductible, agreed at renewal, is usually a safer way to manage cost.
When can a small business get group health cover?
When it reaches the insurer’s minimum group size, commonly around seven lives. Our page on minimum employees explains it.
Frequently asked questions
What insurance does an MSME need?
Usually property insurance, liability insurance, workmen's compensation, and group health and accident cover once the team is large enough.
Is insurance mandatory for MSMEs?
Some is: an employer's liability to injured workers is statutory. Most other covers are the business's choice, though loans and contracts often require them.
How do small businesses reduce insurance cost?
By insuring the right value and agreeing a sensible deductible, rather than cutting the sum insured.
What happens when you talk to us
A 20-minute video call with a Growth Advisor. No obligation, and no quote pushed. It opens with a five-minute video from our founder on how the benefits stack works and why Ethika exists; the rest is your questions. You’ll leave with an honest read on your current cover and claims experience, and a straight answer on whether we can genuinely help, even if you never become a client.
20 minutes with a Growth Advisor. No obligation.
A note on this page. Everything here is general information, not insurance, legal, financial or tax advice, and nothing is an offer. No insurer or product is named or recommended. What any policy covers depends on its own wording and schedule. For advice about your situation, talk to us.