Over 50% of small medium enterprises (SMEs) in the country are not insured and at risk of losing business due to various reasons such as fire. The low insurance take-up rate to businesses’ view that insurance is not a priority as well as lack of education.
With insurance, depending on coverage, it could cover theft, fire, products as well as natural disasters, but unfortunately, many view it as unnecessary, hence putting their whole business operations at risk. With the growth of digitalisation, SMEs can also tailor their cyber insurance according to their nature of business for coverage in case of a breach or data loss.
During the event, Entrepreneur Development Minister Datuk Seri Redzuan Yusof had said that SMEs should consider being insured as it could protect their business from losing out in any event and is a way to mitigate risk. The SMEs will be contributing to 41% of the gross domestic product by 2020, and this is huge. The risk is big.
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