While the headlines usually cover large enterprises, the truth is that the small and medium enterprise (SME) accounts for the vast majority of any nation's businesses: from Egypt to the United Kingdom, nearly 98 percent of all businesses are SMEs. Most insurance brokers receive the majority of their revenue from small and medium enterprise insurance.

SME insurance covers a wide variety of firms: beauty hair salons, restaurants and shops. Each of these sectors has their own key interests and concerns. Shop insurance (retail) is a very important sector covering many minor categories including newspapers, bakeries and even florists.

The price of shop insurance is very important. Next, insurance must offer proper risk management. Legal and financial advice is also important elements of shop insurance.

Each specific sub-category will have specific issues that need to be covered by insurance. Whether a restaurant is Chinese or Indian, it will still need to cover important concerns like public and product liability, food deterioration and business interruption. Additional coverage can be added for equipment breakdown and legal expenses. Beauty hair salons have insurance coverage for washing, ear piercing, facials, waxing and exfoliations. Small office firms might cover laptops, computers and employee fraud.

Shop insurance usually has basic policy coverage for general public and product liability, fire, burglary, building and contents, business interruption, legal fees, loss of license, signage, glass and fraud. Other coverages might include equipment breakdown, terrorism, goods in transit, employee theft, subsidence and medical.

Shops with delivery vehicles might also need additional insurance coverage. This is usually based on how many vehicles the shop runs.

It is important for the shop owner to carefully consider attached warranties and endorsements. Depending on the specifics, these might be the difference between a policy fulfilling the actual needs of the shop, when problems arise.

Some SMEs might need to pay higher premiums, if there are any non-standard features to the business (flat roof or high risk, for example). Start-up businesses might begin with higher rates.

The business owner must research amongst the wide range of options to consider the best fitting insurance package. Packages tend to be more affordable, offering a wider range of coverage. While most SMEs still depend on an insurance broker (due to better prices, service and a more personal touch); other options include a bank or building society or the Internet. The personal face-to-face contact of an insurance broker remains a comforting feature. It is easier to be "lost in the shuffle" with an impersonal Web site, when you have never met your "representative".

Business insurance is very important due to all of the dangers of the world. Shop around to make sure you have the insurance package that you need for your small or medium enterprise. Protect yourself against all potential liabilities.

Choose from the numerous insurance options available. Buying multiple insurance packages from the same firm may lead to lower rates. Compare different features and coverages. Consider possible future needs.

Manage your risk by being proactive. Protect your employees and company assets against liability with small and medium enterprise insurance. (Source: ArticlesBase.com)

* The author is a freelance writer.
* The views expressed by the author in this feature are entirely his own and do not necessarily reflect the views of SME Times.