Another round of gov’t insurance now available for SMEs

In a move to bolster small and medium-sized enterprises (SMEs), the government has opened another round of applications for catastrophic insurance and subsidies.

Since its launch in 2019, the program has already issued 89 policies worth a total insured amount of MOP13.1 million.

The “Small and Medium Enterprises Catastrophe Property Insurance” and the accompanying “Small and Medium Enterprises Catastrophe Property Insurance Subsidy Scheme” are now accepting applications from June 21 to Dec. 31 of this year. SMEs can purchase catastrophe insurance policies through five participating local insurance companies, with coverage options ranging from MOP100,000 to MOP500,000.

To ease the financial burden on merchants, the government, through the Industrial and Commercial Development Fund, will provide eligible SMEs with a 50% premium subsidy, up to a maximum of $30,000. This means businesses can pay as little as 15% of the standard premium, depending on their insurance situation.

The catastrophe insurance program was launched in 2019 to address the problem of commercial property losses not covered by insurance during severe weather events, such as typhoons and storm surges, particularly for SMEs in low-lying areas in Macau prone to flooding.

This initiative aims to support local small and medium-sized businesses, which are the backbone of the local economy. By providing affordable catastrophic insurance and subsidies, the government hopes to give these enterprises the financial protection they need to weather any unexpected disasters. Howard Tong