This research investigated if perception towards insurable risks does mediate the association of firm leverage with general Takaful demand among small and medium enterprises (SMEs) established in Malaysia. As a result, two significant aspects; perception among firms and leverage, did display some essential relationships with general Takaful demand, indicating that leverage with higher values points towards greater capacity in substituting capital properties, besides forking out cash to pay for financing, as well as additional financing services. On top of that, the Takaful coverage that had been sought by firms demands more financing, primarily to protect these firms from specific risks. Other than that, perception exerted by firms towards insurable risk exemplified a strong mediation between leverage and general Takaful demand. With that, the outcome of the study displayed some implications for imminent and continuous general Takaful demand that focuses on enhancing the perception of SMEs, which could be attained by offering consistent and exceptionally excellent services. In fact, with better service provision, more SMEs would be encouraged to continuously subscribe to the various general Takaful products.