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What kind of Coverage do I need for Business Insurance in Singapore?

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What kind of Coverage do I need for Business Insurance in Singapore?

2021-01-29T09:21:13+08:00December 4, 2020|0 Comments

A good insurance cover depends on the nature of your business. A business insurance cover is not just a regulatory requirement but has numerous benefits for a company. The insurance cover is vital in ensuring your business, the owner, employees, and suppliers are protected from potential threats that might arise from the business. 

Business risks are too many to mention, starting from natural causes like flooding and fire outbreaks to artificial causes like thefts and accidents, among others. Thus, taking a proper insurance cover will ensure that your business runs smoothly and guaranteed compensations in case that any insured related loss occurs. Besides, the business owner will have peace of mind while operating their activities, leading to the possibility of profitability and productivity. 

Types of Business Insurance 

Before deciding on the type of business that will be better for your business activities, let’s discuss some of the available business insurance cover policies in Singapore. 

1. Property Insurance 

The property insurance in business generally covers all the premises and assets that the company has. They might include things like buildings, machinery, furniture, stock, among other properties that are under the business premises. Property insurance covers perils that can result from any of the following; 

  1. Fire insurance: this does not only limit the cover to fire outbreak but also includes other risks like flooding or thunder & lightning.
  2. Theft insurance: this will be applicable in theft or robbery with violence within the business premises. 
  3. Interruption Insurance cover: Covers any loss that is incurred when the business normalcy is threatened or suspended following damages of business materials, fire, or flood. 

2. Employees 

The second insurance cover is employees, and it is highly dependent on the status of the workers. Some contracts might require all employees are insured, and the most common two types of applicable insurance covers for employees are: 

  1. Work injury compensation  
    This cover is essential for companies that are involved in risky activities like construction and heavy industries. According to the Work Injury Compensation Act (WICA), employers must purchase the cover for both local and foreign employees who are in manual work irrespective of their earnings and those in non-manual work who are earning less than $ 2,100 per month. Such covers can help the company compensate employees or for their treatment in case of any complaints of accidents or injuries they face when on duty. Any employer who fails to provide this insurance cover when asked to might face a fine of SGD 10,000 or 12 months imprisonment or both. Note that this insurance policy requirement does not apply to the freelancers and independent contractors that an employer engages in. 

  2. Basic health insurance. 
    The Singapore Employment Act mandates all employers to make CPF contributions towards the coverage of all Singaporean employees. A portion of this contribution goes to the MediShield, basic insurance for Singaporeans only who should benefit from it during the old age or in the event of serious illness. 
    The work injury compensation and basic health (Medishield) are compulsory employees’ insurance covers that are a must-have for employers. 

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3. Legal Liability 

Some unfortunate risks that come from employees’ negligence might lead to your business being held responsible for their occurrences and asked to make compensations. The covers include:

  1. Public liability insurance provides coverage if a bodily injury or a loss of someone’s property results from your business operations or activities. 
  2. Director and Officer Insurance. Since these are the key decision-makers in your business, if they are held responsible for their negligence, it can adversely affect the business operations. 
  3. Professional indemnity insurance; the cover is pegged on the business’s nature, and it covers professionals within the company. That is lawyers, accountants, auditors, engineers, etc. 

In conclusion, while the insurance covers are broadly categorized into Property, Employee, and Legal Liability, several subsections are involved, and therefore it is vital first to understand the nature of your business for you to take the right insurance cover. Paul Hype Page Consultations will help you understand the Employment Acts requirements and additional important covers to help you run your business smoothly in Singapore. Further, you have to consider your budget for you to determine with certainty the kind of coverage that will suit your business insurance.

What kind of Coverage do I need for Business Insurance in Singapore?  FAQs

What types of insurance do I need in Singapore?2020-12-04T09:38:33+08:00

Several insurance policies are essential in Singapore. However, you should first consider the following insurance policies:

  • Health insurance; is arguably the most essential insurance policy you should consider in Singapore.
  • Disability insurance
  • Life insurance
  • Personal accident coverage
What types of business insurance must I take for my business in Singapore?2020-12-04T09:38:11+08:00

If you have a business or thinking of starting one, then you should consider having the following three types of insurance:

  1. Property insurance
  2. Employees insurance
  3. Legal liability insurance
Which insurance companies should I consider for my small business in Singapore?2020-12-04T09:37:37+08:00

If you are a start-up then you should consider any of the following companies for your small business:

  • Travelers: serves best the commercial property insurance
  • Progressive commercial: for commercial automotive
  • State farm: serves the overall purpose
  • The Hartford
  • Hiscox: consider it if you are an independent contractor.
How much will it cost me to take business insurance in Singapore?2020-12-04T09:36:27+08:00

The business insurance coverage in Singapore is relatively cheaper. The general liability will cost you no more than $53 monthly while for professional liability you will have to part with no more than $46 per month. 

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