Insurance You Need Before Starting Your SME Business in Malaysia

I am starting a business, what insurance do I need?

Starting your own SME is an exciting journey — from registering your company to renovations and finally opening your doors to customers. But one common and significant oversight for most of the new business owners – Adequate business protection at every stages !

Risks don’t wait until you’re officially “open for business.” They can happen during renovation, construction, and even before your first sale, having the right insurance plan in place is critical to protect your business investment.

During Renovation Stage

Before your SME officially launches, renovations often take place to prepare your shop or office. Unfortunately, this stage exposed to risks: accidents, property damage, and liability to third parties.

Essential Insurances During Renovation:

Contractor’s All Risk Insurance (CAR):
Protects against damage to your property (including fire and accidental damage) and third-party property during renovation works.
Example: A contractor accidentally sparks a small fire while doing wiring work, damaging part of the shop. CAR covers the repair costs.
Workmen’s Compensation Insurance:
Covers contractors and workers in case of workplace accidents.
Example: A worker falls from a ladder while fixing ceiling lights. Medical expenses and compensation are covered.
Public Liability Insurance:
Protects you if renovation activities cause injury or property damage to third parties (e.g., neighboring shops).
Example: A burst pipe during renovation floods the shop next door. Public Liability covers the repair claim.

Why it matters: A single accident, fire, or flood during renovation could lead to costly claims. Insurance gives you peace of mind so you can focus on preparing your business.

After Renovation

Starting Your SME Operations

Once your renovation completed and your SME is ready to welcome customers, your insurance needs will shift. Important coverage to keep your business protected at all times against the unforeseen risk ; Your business assets, your stocks, your liability and your overhead.

Best Option to Start With:

SME Starter Shield (InsureSME.my)

Fire & Burglary Coverage (including accidental damage and flood)
Property & Stock Protection
Public Liability Insurance (already included!)

Affordable premium designed for new businesses

A sudden electrical fire damages your stock of clothing before opening day. Starter Shield covers the loss.
A seasonal flash flood seeps into your retail store, damaging shelves and stocks . Starter Shield helps you recover without draining your savings.
A customer slips on a wet floor and injures themselves. Public Liability covers medical costs.

Why it matters: SME Starter Shield ensures your shop or office stays safe from the most common risks in Malaysia — from accidental fires to seasonal floods — all at an affordable price.

Pro Tips from InsureSME.my

That way, your SME is protected against accidents, fire, flood, burglary, and liability risks — from Day 1 all the way to long-term growth

With InsureSME.my, your SME is well protected against the unforeseen risk ; accidents, fire, flood, burglary and liability risk – from Day 1 to all the way to long term growth.

Ready to protect your business journey?

Choose The Plan That Fits

Starter Shield

If you’re running a small retail outlet or starting up, Starter Shield gives you protection against the most common risks — at an affordable price.

Growth Shield

For growing retail SMEs, Growth Shield offers enhanced coverage with additional protections to handle more complex risks.

Premium Shield

For established retailers with high-value assets, Premium Shield delivers the highest level of coverage for total peace of mind.

Pro Tips for SME Owners

Protect Before Day 1

Don’t wait until your shop opens — risks already exist during renovation. Get Contractor’s All Risk + Liability Insurance before business operations begin.

Confirm Landlord Requirements

Many landlords in Malaysia require tenants to have Public Liability and Fire insurance before handing over the keys. Always check your tenancy agreement.

Watch Out for “Special Perils”

Fire policies usually include Fire & Special Perils (e.g. flood, lightning, riot, explosion, lalang/bushfire, landslide). If your SME is near empty land or lalang fields, make sure this is included.

Don’t Forget Flood Risk

Flash floods can happen even in urban areas like KL and PJ. Always confirm your coverage includes flood damage, not just fire.

Keep Receipts & Records

For claims (fire, flood, burglary), insurers often require proof of stock or equipment value. Keep invoices, receipts, and photo records.

Bundle Your Coverage

Buying a packaged plan like SME Starter Shield is often cheaper and more comprehensive than piecing together separate insurances.

Upgrade As You Grow

Review your coverage yearly. Start with Starter Shield, then move to Growth Shield or Premium Shield once you expand, hire more staff, or carry higher stock.

Train Your Staff

Insurance covers the financial side, but prevention matters. Provide basic fire safety training, install extinguishers, and keep an evacuation plan visible.

Check Liability Limits

Public Liability is included in all InsureSME plans, but make sure the liability limit fits your business size. A busy retail store needs higher protection than a small kiosk.

Plan For Downtime

Consider Business Interruption coverage once your SME grows. It keeps your cash flow alive if operations stop after fire, flood, or other disasters.