Business Insurance Every Singapore Business Needs
The business environment is constantly evolving and so are the risks. These risks may seem negligible but the consequences could be dire. In order to make your business journey go as seamless as possible, it is important to protect your business against unexpected events and risks.
The best way to protect your business in the long-run is by taking an insurance coverage. No matter the size and type of your business, an insurance coverage can protect both your employees and business against unexpected events.
Imagine a situation, where an unfortunate fire destroys your warehouse and you are not insured or your employee meets with an accident while working on the machinery. What do you do then? These are some real-life situations which cause trouble to both business owners and employees in the absence of an insurance cover. Having business insurance, not only gives you peace of mind but also lets you focus on running your business better and improving its profitability and productivity.
What is Business Insurance?
Business insurance as the name suggests is insurance for your business. Apart from protecting your business, it protects you from legal liabilities and losses that you might incur if something unfortunate happens during the course of your business. Business insurance also safeguards the interests of your employees, suppliers and customers from the potential risks of unexpected losses.
What are the Types of Business Insurance?
Business insurance can be broadly classified under 3 categories – property, employees and legal liability.
Property insurance covers losses or damages to your business properties such as your building, plant, stocks, machinery, equipment, furniture, fixtures and fittings, etc. It provides coverage against fire, theft, terrorism, business interruption, etc.
There might be a statutory obligation to insure your employees based on their employment status. Employee insurance is primarily of two types:
This insurance provides coverage for your company against claims for injuries or diseases suffered by your employees while working. Moreover, it is a mandatory requirement to purchase work injury compensation insurance for local as well as foreign employees engaged in manual work or non-manual work with certain conditions. This insurance is vital for businesses involved in the construction or heavy industry, where there are higher risks of worker injury.
This is further divided into three types.
S Pass and Work Permit Holders
Employment Pass Holders
During the course of your business, there is always a huge risk that your business could be held liable for compensation because of the acts of negligence by your employees. There are three major types of insurances under legal liability. They are:
01. Public Liability Insurance
It provides coverage to your business in the event when a third party claims for property damage or injuries to the body as a result of business operations or from the manufacturing, distribution or sales of your product.
02. Director and Officer Insurance
It provides coverage to the key decision-makers in your company (management) in the event when a third party makes a claim for breach of duty or negligence caused by actions or decisions of the management within the scope of their duties and responsibilities.
03. Professional Indemnity Insurance
It provides coverage to your business against legal liabilities arising from acts of negligence of the professionals in the advice industry like auditors, lawyers, accountants, etc. It provides protection if a claim or allegation has been made against you because of the misleading statements, negligent acts, loss of data, intellectual property right infringement or defamation caused by the above-mentioned professionals.
The Bottom Line
Business insurance is essential for SMEs as well as large enterprises. It protects the core elements of the operation of any business – Its People, Assets and Profit and makes them better prepared for any challenges or disruptions while still maintaining functional business operations. IMC Group helps its clients obtain cost-effective and comprehensive insurance plans after understanding the nature of their business and performing a threat assessment to best determine the scope of liabilities in the event of any unfortunate situations.