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Tune Insurance Malaysia Bhd has launched a six-in-one business insurance policy targeted at small and medium enterprises (SMEs).
Known as Business Shield, the new product covers the six most-common risks for SMEs, namely: fire, burglary, loss of money, fidelity guarantee, plate glass signboard and signage, and public liability.
Business Shield comes with two complimentary benefits: anti-theft system replacement, which covers up to MYR1,000 (US$240) for damaged alarms, CCTVs, or central monitoring systems; and personal effects, which covers up to MYR500 for personal items lost during theft or robbery. Several add-on benefits are also available, such as employee accident insurance, employer’s liability, and business interruption.
According to a statement from Tune Insurance, SMEs make up the backbone of the Malaysian economy, but many of them lack insurance cover. It cited data from Bank Negara Malaysia, which showed that only around half (54%) of SMEs have insurance or takaful coverage, while a mere 34% of SMEs were protected against fire, while only 25% had burglary insurance.
The insurer illustrated the huge negative effect underinsurance has on businesses, exposing them to unforeseen financial losses that may result from fire, flood, or burglary. In 2017, MYR5.2 billion (US$1.2 billion) in losses from fire nationwide were recorded by the Malaysian Fire and Rescue Department. Meanwhile, the 2017 floods in Penang and Kedah forced almost 3,000 SMEs to halt operations. Penang manufacturers were hit with over MYR200 million (US$42 million) in losses due to flooded factories, damaged equipment, and supply chain disruptions, Tune Insurance said.
