Here’s Why Your Business Needs A Business Insurance

Written by Iris Lee

From the day you start your business, even before the first employee is hired, your business is at risk. This is why it is important to have the right insurance in place to protect your business and yourself.

As of 2016, 98.5% of businesses in Malaysia are made up of Small Medium Enterprises (SMEs), and these SMEs are expected to contribute 41% to the Gross Domestic Product (GDP) by 2020.

This means SMEs play a crucial role in the country’s economy. As a business owner, it’s important for you to ensure you are effectively mitigating your business risks.

Some of the common risks that businesses may face are financial risks, operational risks, compliance risks and strategic risks. If these risks are left unmitigated, it can result in loss of productivity and revenue. This can be made worse if your business is highly dependent on a single person, known as the key person. Any unfortunate events that may befall this person can make or break your business.

To protect your business continuity against all these risks, every business should consider taking up a business insurance to ensure there’s no disruption in the business. The longevity and success of your business lie in your planning.