Small and Medium Enterprises (SMEs) are the unsung heroes of virtually every economy, and their employees lie at the heart of their success. That’s why more and more SMEs are offering their workers coveted employee benefits like life and health insurance—i.e., SME coverage.

But SME insurance is not the same where ever you go. Plans—and plan eligibility—varies by country, carrier and other factors.

We’re here to help you make sense of it, so you can secure this valuable protection for your business and employees.

Do you know if your business is an SME? That depends on who you ask.

Typically, SMEs are defined in terms of the number of employees on a company’s payroll, although sometimes, they’re defined by annual revenue, total assets or another financial measure.

Further complicating things: when it comes to defining SMEs by employee head count, there’s no universally agreed‑upon number. Interpretations vary, especially from country to country.

But one fact is undisputable: while modest in size compared to large corporations, collectively, SMEs are critical to local and global economies. According to the United Nations, SMEs account for:

Because SMEs play such an important role, PALIG is proud to offer quality SME insurance in a growing number of countries.

While plan specifics vary, PALIG’s SME offerings are built around life and health insurance. (In some regions, we also offer employers optional coverages, such as dental and maternity coverages.)

For example, we offer what we call “5:25 Business Plans”—a competitive, pre‑packaged employee benefits solution for SMEs with five to 25 employees.

In contrast, SME coverage in Latin American varies widely. For example, in Guatemala, SMEs with three to 50 employees are eligible for our MINIMED product, while in El Salvador, SMEs with 25‑75 employees are eligible for our FLEXIMED solution.

While the plans vary in terms of coverage details, all are customizable to fit a range of business needs and budgets.

More than ever, workers are seeking employers who offer attractive employee benefits packages, especially health insurance. Offering quality SME insurance allows smaller employers to compete with large corporations for talent.

Beyond recruiting, SME coverage can help employers retain their workforce—a key to ensuring business continuity and financial stability. Employees are reluctant to leave an employer who provides quality benefits, just as they’ll think twice about leaving an employer who takes good care of them.

In addition, by providing employees with access to life and health insurance, employers help their workers and their families be financially ready for whatever the future holds—which some employees might not otherwise pursue on their own.

Finally, some studies show that health insurance may reduce absenteeism, by encouraging workers to seek treatment before an illness worsens. Indirectly, SME Coverage helps business owners not only to recruit and retain talent, but also enhances the competitiveness of the SME, motivates and improves employees' loyalty‑ while providing an environment that promotes wellbeing through disease prevention campaigns.

Like most forms of insurance, there are some common misunderstandings surrounding SME insurance. Here’s our top three:

Some SMEs assume premiums will be out of reach, until they look into actual costs. PALIG’s SME offerings are intentionally designed to be affordable for smaller employers. To achieve this, we leverage cost‑saving strategies, like negotiating provider discounts. In addition, our agents are experts at tailoring plans to fit employers’ budgets.

Conversely, some employers assume that any health plan they can afford is bound to be skimpy. This simply isn’t the case, at least with PALIG. Our health plans for even tiny groups typically cover physician’s visits, hospitalizations, procedures, tests and more—similar to large group coverage.

Actually, in most markets, employees are increasingly prioritizing group benefits, particularly as healthcare costs rise. In fact, a significant percentage of employees are willing to switch employers solely to obtain better benefits.

In short, you won’t know what SME coverage is available to you—and how much it will cost—until you ask. Don’t miss the opportunity to secure valuable SME insurance for your business and employees.