Globally, Small and Medium Enterprises (SME's) make up to over ninety per cent of businesses and account for between fifty to sixty per cent of employment. It is observed that although Small and Medium Enterprises (SMEs) are extremely important in helping a large number of very poor people become less poor, they are characterised by high mortalities due to the uncertain socio-economic and policy environments that they operate in and inaccessibility to financial services insurance included.
It has been noted that the greatest risk the SMEs face in developing nation is fire. In this regard, to prevent the SMEs from such early mortalities, insurance companies have come up with various products targeting the SMEs to insure them against fire. Fire insurance is a form of property insurance which protects people from the costs incurred by fires. When a structure is covered by fire insurance, the insurance policy will pay out in the event that the structure is damaged or destroyed by fire. Some standard property insurance policies include fire insurance in their coverage, while in other cases; fire insurance may need to be purchased separately.
It is on this note that this study sought and to examine factors that influence decision to insure small and medium enterprises against fire in Port Moresby, PNG. In particular, the study aimed at establishing the level of knowledge on Fire Insurance among SME owners, assessing the attitude towards fire insurance on business (SMEs), determining the magnitude of perceived benefits of fire insurance and examining the factors that affect decision to insure SMEs against fire disasters in capital city of PNG.
Small and Medium Enterprise (SME), Insurance, Papua New Guinea (PNG), National Development Bank (NDB), Investment Promotion Authority (IPA) Motor Vehicle Insurance Limited (MVIL), Small Business Development Corporation (SBDC)
