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SME Package - Overview

Product Codes

  • 1061 - SME Package (Main)
  • 7038 - SME Medical (In-patient)
  • 7040 - SME Medical (Alternative)

Coverage Basis

SME (Small and Medium Enterprises) Package insurance is a comprehensive multi-section policy combining multiple coverages tailored for small businesses in one package:

  • Property damage (fire, perils, contents, stock)
  • Money insurance (cash in transit, premises, safe)
  • Business interruption (loss of profit, rent)
  • Fidelity guarantee (employee dishonesty)
  • Electronic equipment (computers, IT equipment)
  • Machinery breakdown
  • Public liability (third party claims)
  • Personal accident (employee accidents)
  • Group medical (optional add-on)

Key Features

Multi-Section Flexibility

  • Choose Only What You Need - Select from 8 sections
  • Single Policy Document - All coverages in one policy
  • One Premium - Combined pricing for all sections
  • One Renewal Date - Simplified administration

Designed for Small Businesses

Typical Customers: - Retail shops and trading companies - Restaurants and cafes - Small offices and service businesses - Light manufacturing and workshops - Professional services

Business Size: Small to medium enterprises with annual turnover up to AED 50 million

Coverage Sections

Section 01: Property Damage

What's Covered: - Contents (furniture, fixtures, fittings) - Stock and inventory - Tenant's improvements - Loss of rent (if tenant) - Building improvements

Perils Covered: - Fire and explosion - Lightning - Burglary and theft - Water damage - Impact damage

Section 02: Business Interruption

What's Covered: - Loss of gross profit - Additional expenses - Increased cost of working - Rent continuation

Basis: Gross profit or annual turnover Indemnity Period: Typically 12 months

Section 03: Money

What's Covered: - Money in transit (between premises and bank) - Money in business premises (during business hours) - Money in locked safe or strongroom - Money at employee's residence - Damage to safe or strongroom

Limits: Specified per location/event

Section 04: Fidelity Guarantee

What's Covered: - Loss due to employee dishonesty - Theft by employees - Fraud by employees

Who's Covered: Employees in positions of trust handling money/assets

Section 05: Machinery Breakdown

What's Covered: - Mechanical or electrical breakdown - Explosion of machinery - Sudden and unforeseen damage - Deterioration of stock (due to breakdown)

What's Not Covered: - Normal wear and tear - Gradual deterioration - Maintenance issues

Section 06: Electronic Equipment

What's Covered: - Computer equipment and peripherals - IT systems and servers - Office equipment - Portable equipment (laptops, tablets) - Electronic data and media

Coverage: All risks including accidental damage

Section 07: Public Liability

What's Covered: - Bodily injury to third parties - Property damage to third parties - Legal defense costs - Court attendance costs

Typical Limit: AED 500,000 to AED 5,000,000

Who's Covered: Business operations, premises, products

Section 08: Personal Accident

What's Covered: - Death - Permanent total disablement - Permanent partial disablement - Temporary total disablement - Medical expenses - Repatriation expenses

Who's Covered: Specified employees or all employees

Medical Add-On (Products 7038, 7040)

Optional Group Medical Insurance

Product 7038 - In-patient Focus: - Hospital in-patient treatment - Surgery and operations - ICU and emergency care - Optional out-patient

Product 7040 - Alternative Medical: - Similar in-patient coverage - Different network/TPA options

Coverage Basis: - Per-employee pricing - Based on employee census - Network-based (TPA selection) - Geographic scope (UAE or GCC)

Mandatory vs Optional Sections

Typically Mandatory

  1. Section 01 - Property (if premises/contents)
  2. Section 03 - Money (almost all businesses)
  3. Section 07 - Public Liability (business operations)

Commonly Selected

  1. Section 08 - Personal Accident (employee coverage)
  2. Section 02 - Business Interruption (profit protection)
  3. Section 06 - Electronic Equipment (if significant IT assets)

Optional Based on Business

  1. Section 04 - Fidelity (if handling significant cash/assets)
  2. Section 05 - Machinery (if manufacturing/production)
  3. Medical Add-on (employee benefit)

Product Variations

1061 - SME Package (Main)

Best For: - Shops and retail businesses - Offices and service companies - Restaurants and hospitality - Light trading and distribution

Key Feature: Flexible section selection

7038 - SME Medical (In-patient)

Best For: - Companies wanting group medical benefits - Employee retention and benefits - Comprehensive in-patient coverage

Key Feature: Per-employee pricing, network-based

7040 - SME Medical (Alternative)

Best For: - Similar to 7038 but different network/TPA - Alternative medical options - Specific coverage requirements

Typical Package Combinations

Retail Shop Package

  • Section 01: Property (contents + stock)
  • Section 03: Money (daily cash handling)
  • Section 07: Public Liability (customer injuries)
  • Section 08: Personal Accident (employees)

Restaurant Package

  • Section 01: Property (kitchen equipment, furniture)
  • Section 03: Money (cash transactions)
  • Section 04: Fidelity (cash handlers)
  • Section 07: Public Liability (food poisoning, customer injuries)
  • Section 08: Personal Accident (kitchen staff)

Office Package

  • Section 01: Property (office contents)
  • Section 02: Business Interruption (revenue protection)
  • Section 06: Electronic Equipment (computers, IT)
  • Section 07: Public Liability (visitors)
  • Optional: Medical add-on (employee benefits)

Workshop/Manufacturing Package

  • Section 01: Property (equipment, stock)
  • Section 05: Machinery Breakdown (production equipment)
  • Section 06: Electronic Equipment (control systems)
  • Section 07: Public Liability (operations)
  • Section 08: Personal Accident (workers)

Next Steps

Conditions & Exclusions

Standard Exclusions (Apply to All Sections)

What's NOT Covered:

  1. War & Terrorism
  2. War, invasion, civil war
  3. Terrorism acts

  4. Political risks

  5. Nuclear Risks

  6. Nuclear reaction or radiation

  7. Radioactive contamination

  8. Consequential Losses (Unless BI Section Taken)

  9. Loss of profit
  10. Loss of market

  11. Business interruption

  12. Intentional Acts

  13. Deliberate damage by insured
  14. Fraud by insured

  15. Criminal acts

  16. Wear & Tear

  17. Gradual deterioration
  18. Normal maintenance issues
  19. Depreciation

Business Types We DON'T Insure

Declined Business Types: - Arms and ammunition - Explosive manufacturing - Nuclear facilities - Casinos and gambling - Nightclubs and adult entertainment - Money lending/pawnbrokers

High-Risk Businesses (Special Terms): - Petrol stations - Chemical trading - Fireworks dealers - Welding and gas cutting - Furniture manufacturing (fire risk)

Section-Specific Exclusions

Section 01 - Property: - Electrical/mechanical breakdown (need Section 05/06) - Theft without force and violence - Mysterious disappearance - Stock shortage/inventory shrinkage

Section 02 - Business Interruption: - Losses without physical damage - Strikes and labor disputes - Utilities failure (unless caused by insured peril)

Section 03 - Money: - Money not in transit or premises as defined - Loss due to accounting errors - Currency devaluation - Counterfeit money

Section 04 - Fidelity: - Dishonesty known before policy start - Inventory shortage without proof of dishonesty - Losses discovered >6 months after employee termination

Section 05 - Machinery: - Gradual deterioration - Wear and tear - Lack of maintenance - Overloading or misuse

Section 06 - Electronics: - Software/data loss (unless physical damage) - Virus or cyber attacks - Obsolescence - Cosmetic damage

Section 07 - Liability: - Employer's liability (need WC) - Professional indemnity - Product liability (unless extended) - Contractual liability

Section 08 - Personal Accident: - Pre-existing medical conditions - Suicide or self-inflicted injury - Intoxication - Illegal activities

Geographic Limitations

Standard Coverage: - UAE territory only

Extended Coverage: - GCC countries (additional premium) - Worldwide travel (for PA section)

Sum Insured Limitations

Minimum Total SI: - Typically AED 100,000 aggregate - Smaller risks may be declined

Maximum Total SI: - Standard: AED 10,000,000 - Above needs reinsurance support

Section-Wise Limits: - Property: Max AED 5,000,000 (standard) - Money: Max AED 500,000 - Liability: Max AED 5,000,000 - Electronics: Max AED 500,000

Underwriting Declinations

We Will NOT Quote if: - Business operating without trade license - More than 5 claims in last 3 years - Poor fire safety (for property section) - No safe/security for money - Hazardous operations without controls - Annual turnover >AED 50 million (refer to corporate)

Mandatory Section Requirements

Minimum Sections Required: - Typically need at least 3 sections - Property OR Money section usually mandatory - Liability section highly recommended

Section Dependencies: - BI section requires Property section - Deterioration requires Machinery section - Some sections cannot be standalone

Property-Specific Conditions

Construction Requirements: - RCC (Reinforced Concrete) construction preferred - Wooden structures: Loading or decline - Temporary structures: Usually declined

Fire Protection: - Fire extinguishers mandatory - Sprinklers recommended for high values - Fire alarm for >AED 500K contents

Security Requirements: - Burglar alarm for contents >AED 200K - CCTV for high-value stock - Safe for money section

Medical Add-On Conditions (7038/7040)

Employee Eligibility: - Must be on valid visa - Must be active employees (not probation) - Minimum age: 18 years - Maximum age: 65 years

Pre-Existing Conditions: - Typically excluded or waiting period - Maternity: Waiting period applies - Chronic conditions: Need disclosure

Network Requirements: - Must use approved TPA network - Out-of-network: Lower benefits or not covered - Emergency: Any facility accepted

Excess/Deductible by Section

Property Sections: - Typically 10% of claim (min AED 500) - BI: Usually 72 hours waiting period

Money: - AED 500 per claim

Fidelity: - AED 1,000 per claim

Machinery/Electronics: - 10% of claim (min AED 500)

Liability: - AED 5,000 - AED 25,000 per claim

Personal Accident: - Usually nil excess

Special Conditions

Average Clause: - Applies if under-insured - Pro-rata claims settlement - Must declare accurate values

Basis of Settlement: - Property: Reinstatement value - Stock: Market value - Money: Face value

Warranties: - Safe for money must meet specifications - Fire protection must be maintained - Security systems must be operational

Critical for Portal: Validate business type against declined list. Ensure minimum 3 sections selected. Check SI limits per section. Flag high-risk activities for underwriting.