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;
- Fire insurance: this does not only limit the cover to fire outbreak but also includes other risks like flooding or thunder & lightning.
- Theft insurance: this will be applicable in theft or robbery with violence within the business premises.
- 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.
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:
- 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.
- 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.