What is SME Commercial Package Insurance?
An SME commercial package policy bundles several distinct covers into a single contract, making it easier and more cost-effective for small and medium-sized businesses to protect their premises, assets and liabilities. Each module can be switched on or off: a pharmacy may prioritise glass breakage and theft, while a small textile workshop may focus on fire and business interruption.
Large industrial and manufacturing facilities typically require Property All Risks (PAR) or Industrial All Risks (IAR) policies, which involve high sums insured, engineering risk surveys and dedicated reinsurance placement. SME package insurance is designed around standardised cover blocks for smaller commercial premises — faster to arrange, simpler to administer, and calibrated to the risk profile and budget of an SME. For industrial sites, see our Property & Fire Insurance page.
Who is it designed for?
Retail Shops
Clothing, electronics, hardware, supermarkets — stock, fixtures and customer liability.
Offices & Professional Premises
IT equipment, servers, glass facades and occupier liability.
Restaurants & Cafes
Kitchen equipment, fire risk, food spoilage and customer accident liability.
Light Workshops
Machinery, raw-material stock, semi-finished goods and business interruption.
Clinics & Healthcare
Medical devices, glass panels and third-party patient liability.
Warehouses & Logistics
Stock, racking systems, forklift damage and loss of business income.
Selectable Cover Blocks
An SME package policy is assembled from the following modules, chosen to match your specific risk profile:
Core Covers
- Fire and allied perils — fire, lightning, explosion, smoke damage
- Flood, storm and natural perils — inundation, windstorm, hail
- Water damage — burst or leaking pipes, sprinkler leakage
Physical Damage Modules
- Theft and armed robbery — forced entry, hold-up and attempted theft
- Glass breakage — shopfronts, internal partitions, advertising panels
- Electronic equipment (EEI) — computers, POS terminals, medical devices, CCTV
- Machinery breakdown — compressors, HVAC, lifts and production equipment
Liability & Business Continuity Modules
- Premises (public) liability — bodily injury or property damage to third parties caused by your operations on the insured premises
- Tenant's liability — tenant's liability to the building owner for damage to the rented premises
- Business interruption (BI) — gross profit loss and continuing fixed costs following an insured physical loss
SME-Specific Underwriting Factors
Unlike complex industrial risks, SME package underwriting follows standard frameworks. The key factors affecting premium and acceptance are:
- Construction type — masonry, timber, steel-frame or reinforced concrete; fire-resistance rating
- Occupancy and hazard class — flammability of stock and materials stored, chemical risk
- Fire protection — sprinklers, smoke detectors, extinguishers, fire-escape plans
- Security — intruder alarms, roller shutters, CCTV (relevant to theft module)
- Adequacy of sum insured — underinsurance triggers pro-rata reductions at claims; your broker should help validate reinstatement values
- Loss history — frequency and severity over the past 3–5 years
- Annual turnover and gross profit — the baseline for setting the BI indemnity amount
Tenant Insurance Obligations in Turkey
While Turkish law does not impose a universal statutory duty, commercial leases almost invariably include a clause requiring the tenant to maintain fire and third-party liability insurance. Shopping-centre management regulations commonly specify minimum insured values and mandatory covers. Failure to comply may constitute a breach of lease. Your broker can review the insurance clause in your lease and structure a compliant policy.
What SME Package Insurance Does Not Cover
Standard SME package policies typically exclude the following:
- Deliberate damage or sabotage by the insured or employees
- War and terrorism risks (available as a separate endorsement or policy)
- Ground subsidence and landslide (requires specific endorsement)
- Motor vehicles — these require their own motor or fleet policies
- Bodily injury to employees — see Employers' Liability Insurance
- Product liability — for goods manufactured or sold, see Product Liability & Recall Insurance
- Cyber attack and data breach — see Cyber Insurance
Frequently Asked Questions
Consider These Alongside
- Property & Fire Insurance — for large industrial and industrial premises
- Employers' Liability Insurance — liability to your workforce
- Product Liability & Recall Insurance — for manufacturers and distributors
- Public / General Liability Insurance — off-premises operational liability
- All Insurance Solutions →