“Insurance Agents & the Protector Mindset:" Safeguarding MSMEs from the Impacts like Ethiopian Volcano with Business Insurance

The recent eruption of the Ethiopian volcano sent shockwaves far beyond East Africa. Indian MSMEs (Micro, Small, and Medium Enterprises) found themselves facing unexpected challenges due to global supply chain disruptions and increased risks. A global event, thousands of kilometers away, quietly entered Indian workshops, warehouses, offices, and shop floors.

This is the new reality of business —"a disaster anywhere is a disruption everywhere"

This event highlights how interconnected the world economy is and why Indian businesses must rethink their risk management strategies. For insurance agents, this is a crucial moment to educate MSMEs about the importance of comprehensive business insurance.

Indian port with cargo containers affected by global disruptions

THE VOLCANO THAT NOBODY SAW COMING (BUT EVERYONE FELT)

The eruption caused significant disruptions in air and sea freight routes. Many Indian MSMEs rely on imports of raw materials and exports of finished goods. Delays and damage to cargo became common, leading to:

• Production halts due to missing raw materials

• Increased costs from rerouted shipments and storage fees

• Loss of revenue from delayed deliveries to customers

• Inventory shortages affecting sales and customer trust

  
  

A textile manufacturer in Tirupur reported a two-week delay in receiving imported dyes, which halted production lines and led to missed orders. Similarly, exporters of handicrafts from Rajasthan faced cancellations as shipments were delayed or damaged.

Every Agent must be a Guardian. We should not just sell a policy, we should answer every MSME owner's unspoken fear: “What if something out of my control destroys everything I built?” by protecting them with with below 5 coverages

1. Business Interruption — “When Income Stops, Hope Shouldn’t”

Business interruption insurance protects MSMEs from losses caused by unexpected events that disrupt normal operations. The Ethiopian volcano eruption is a clear example of a global disaster that can cause such interruptions. Many MSMEs in India remain uninsured or underinsured against these risks.

Business interruption insurance covers:

• Loss of income during downtime

• Fixed expenses like rent and salaries

• Extra costs to resume operations quickly

  
  

Insurance agents should emphasize how this coverage can be a lifeline for MSMEs facing global disruptions beyond their control.

2. Fire & Property Insurance — “Your Lifework Rebuilt”

Volcanic ash and related environmental effects can increase fire risks and damage property. Indian MSMEs with warehouses, factories, or retail outlets need fire and property insurance to safeguard their physical assets.

This insurance covers:

• Damage from fire, explosions, and natural disasters

• Loss or damage to machinery, stock, and buildings

• Costs of repairs and replacements

  
  

Agents can use recent events to highlight the importance of protecting tangible assets against unforeseen disasters.

3. Marine & Cargo — “Your Money, Protected Across Oceans”

The eruption disrupted shipping routes and increased the risk of cargo damage or loss. Marine and cargo insurance is essential for MSMEs involved in import-export activities.

This insurance covers:

• Loss or damage to goods during transit by sea, air, or land

• Delays caused by unforeseen events

• Theft or pilferage during transportation

  
  

Insurance agents should educate MSMEs on how marine insurance reduces financial risks when goods are in transit, especially during global disruptions.

4. Liability — “One Mistake Shouldn’t End Your Journey”

Disruptions can lead to contractual breaches, product delays, or accidents, exposing MSMEs to liability claims. Liability insurance protects small businesses from legal costs and damages.

Types of liability insurance relevant to MSMEs include:

• Product liability

• Public liability

• Professional indemnity

  
  

Agents can position liability insurance as a critical safety net that protects MSMEs from costly lawsuits triggered by unforeseen events.

5. Cyber — “Your Digital Bodyguard”

The eruption also indirectly affected digital infrastructure and supply chains. Cyber risks are rising as MSMEs rely more on technology. Cyber insurance helps cover losses from data breaches, ransomware, and cyberattacks.

Coverage includes:

• Data recovery costs

• Business interruption due to cyber incidents

• Legal and notification expenses

  
  

Insurance agents should raise awareness about cyber insurance as part of a comprehensive risk management plan.

How Insurance Agents Can Use Global Disruptions to Build Trust

The Ethiopian volcano eruption is a real-world example that insurance agents can use to connect with MSMEs. Agents should:

Step 1: Open with the Ethiopia Volcano Story

“A volcano erupted in Ethiopia…and Indian businesses suffered. Sir, this is how connected your business is to the world today.”

This creates instant connection and attention.

Step 2: Lead Them to Realization

“Even if every system in your business is strong, something far away can still shake everything.”

They will pause. They will think. This is your opportunity.

Step 3: Offer Protection, Not Policies

“Sir, I don’t want you to face these uncertainties alone. Let me show you how your business can stay strong — no matter what happens globally.”

This shifts you from agent → advisor → protector.

Step 4: Build a Protection Blueprint

“Here’s a simple Business Protection Plan: One cover for your assets, One for your income, One for your shipments, One for your legal protection, One for your digital safety.”

Simple. Elegant. Persuasive.

Step 5: Close With Impact

“Sir, you’ve built this business with courage. Let me protect it with certainty. The world may be unpredictable —but your business doesn’t have to be.”

This is not just a pitch. This is respect. This is care. This is how great agents win trust

Positioning Us as a Partner in MSME Protection

AgentSaathi provides insurance agents with tools and resources to market insurance products effectively to MSMEs. Using recent global events like the Ethiopian volcano eruption, agents can:

• Access ready-made educational content

• Customize pitches for different insurance covers

• Track leads and client interactions

• Stay updated on emerging risks and insurance solutions

  
  

AgentSaathi helps agents become proactive risk Advisors/Protectors who guide MSMEs through uncertain times..