According to the Accounting and Corporate Regulatory Authority (ACRA), 542,792 businesses were registered in Singapore during the first quarter of 2021. Once businesses are registered and running, the business owners were taking risks. The best way to ensure a business is protected against risks is by getting business insurance for each company.
This is one of the main insurance policies that businesses in Singapore take. Businesses, whether they are startups or established enterprises, buy all sorts of property, including desks, vehicles, computers, machinery, buildings, and fixtures. Singapore has different kinds of businesses, including online businesses.
More and more Singaporeans are turning to online businesses for goods and services. Singapore’s e-commerce industry is estimated to be worth 4.9 billion dollars. Unfortunately, the greater the demand for e-commerce, the greater the risks for businesses that provide online services.
If you have an e-commerce business or are considering starting one, you may need business insurance against hardware and software theft, trademark infringements, internet telephony crimes, and regulatory changes. Discuss with the insurer aspects of your business to determine the type of property insurance that you need.
When requesting property insurance, you must consider the various risks attached to property damage. For example, business interruption insurance covers lost revenue and expenses that you still incur despite the damage to your property.
Before taking business insurance, have a list of the various risks. Pay greater attention to the direct threats to your business. Your insurer will then provide a customised business insurance package that caters to your immediate needs.
Insurance companies in Singapore have different types of employee insurance policies. The type of cover depends on the employment status and the level of risk to which the employee is exposed. The common employee insurance covers are work injury compensation and health insurance.
Work injury compensation insurance is a cover that protects the business should an employee seek compensation for injuries at work or health conditions resulting from exposures in their workplace.
Singapore’s Work Injury Compensation Act (WICA) requires all employers to get work injury compensation insurance for all local and foreign employees. This business insurance policy is especially critical for businesses in the construction industry where there are higher risks of injuries.
Employers are expected to make contributions to MediShield Life, the basic health insurance for all Singaporeans. Business owners can take on additional health insurance to cater for health cover that is not catered for in the MediShield Life insurance.
Even though foreign workers with work permits and the S pass are not eligible for the MediShield Life cover, they are entitled to medical insurance. Insurance companies have different health policies that employers need to consider when requesting business insurance.
Legal Liability Insurance
Public liability insurance protects businesses from liability. Policies under this category different types of claims from clients or members of the public against the business.
Director insurance protects decision-makers in the company from liability should they get sued for some of their decisions. Professional indemnity insurance protects your occupation in the event you face legal liability. This business insurance cover is ideal for professionals, like auditors, accountants, architects, and lawyers.
Most business insurance covers in Singapore fall under these three categories. However, most insurance companies tailor their policies to suit businesses in various industries.
It is important to discuss the day to day running of the business with your insurer. This way, you can get the insurance policies that will be useful to your business.