Business Insurance Frequently Asked Questions

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Business insurance is a risk mitigation tool aimed to alleviate the cost of repair, compensation, replacement of workplace incidents/ accidents due to 1st party/ 3rd party injuries. From a business perspective, insurance protection is necessary to safeguard the company’s assets (people or property) and in some cases, insurance is made mandatory by law to protect public’s interest when accidents do happen. Business insurance provides the insured with a peace of mind, protecting you from business risk such as theft, damages, mistakes, or even loss of property or lives. Having the right amount of insurance coverage will ensure business continuity as claims payout will help to defray legal / administration/ replacement expenses incurred in an unforeseenable circumstances
Dependent on the type of trade the business is involved in, local regulations may impose mandatory insurance policies to be put in place before it’s operations. Where labour force is applicable, the law requires employers to provide for Work Injury Compensation (WIC) insurance for manual workers earning below $1,600. Other statutory regulations will require real estate/ lawyers/ insurance brokers to have Professional Indemnity (PI) insurance put in place, to protect the insured against error & omissions/ mistakes when dispensing advice or during their conduct of business. Securing a Performace Bond (PB) are also commonly used as a condition in project tender or contract awards, and in the case of Public construction projects, it is a legal requirement to purchase a Performance Bond to cover 10% of the Project Contract Value.
“When choosing what type of coverage is required, we look broadly at the kind of goods or service(s) that is being offered by the company. A manufacturer with factory operations may typically require a property insurance for their factory in case of fire or damage to their premises. A Product liability insurance is useful to indemnify against 3rd party loss/ damages, and factory workers will need Work Injury Compensation Insurance in case of workplace injury accidents. For service related industries, professional indemnity insurance is required for work related errors & mistakes when dispensing professional advice, for occupations such as architects, lawyers, doctors, brokers, agents, surveyors, etc Companies that does retailing will probably need Public liability insurance in case shoppers are involved in a slip & fall situation inside their shop. Owners can also purchase fidelity & money insurance to protect against theft from employees or their customers. Dependent on the business foreseenable liabilities, it would be prudent to seek professional broker advice to evaluate the type of insurance needs & formulate a comprehensive protection plan for your company.”

​The premium for an SME business insurance package deal starts from $19/month onwards.

There are many different business packages in the market, and companies are spoilt with a variety of choices to suit their insurance needs. A typical business package policy aims to address key coverage based on the nature of the client’s business actitivies and is catagoried into industry segments (eg office/ retail/ light industries/ F&B, etc). Within these packages will incorporate key insurance coverage suitable for that industry, which includes basic coverage such as Work Injury Compensation, Property all Risk, business interruption, money, fidelity guarantee.
Companies have also the option of adding coverage outside of the basic features which could add on the cost of the business insurance policy. 

“Business packages typically have core key coverage for a basic policy premium, with the option of add-ons features for additional premiums. Some of the key covers are
Work Injury Compensation – Covers the expenses that comes with an employee’s work related illness or Injury
Public Liability – Covers the cost of legal action and compensation claims made against your business if a 3rd party is injured or their property suffers damages whilst at your business premises or when you are working in their home, office or business property
Professional Indemnity – Covers legal costs and expenses incurred in your defence, as well as any damages or costs taht may be awarded, if you are alleged to have provided inadequate advice, services or designs that caused your client to suffer a financial loss
Fidelity Guarantee – Covers the loss of money or other property belonging to you or for which you are legally responsible for as a direct result of their actions”

The amount of coverage requirement could be easily determined by calculating what is the maximum possible claims scenario that your business could incur, and then buying the appropriate type of insurance cover to protect against possible loss due to that incident. This method of estimating the amount of insurance coverage needed ensures that in any unforeseen circumstances, your risk is fully protected and your business can continue to operate with minimum financial loss & business interruption. Many small businesses fail to understand the importance of protecting their assets (employees, property) and suffers the consequence of loss when one or more of their assets is damaged, injured, or even suffers total loss in an event of an accident. Find an insurer that can cover all of your business risk and you’ll be protected at all times

No. For business insurance, insurers will require your UEN number and nature of business before they can issue the policy. If you haven’t registered your business, no worries – an ACRA registration is quick and affordable.

If you file a claim, the insurer’s claims team will verify that your corporate entity is registered with ACRA before making any claims payments.

You can get a business insurance at the onset but claims will not be payable if regulatory business requirements are not met. Insurance claims payout are usually conditional to adherence of local/ mandatory regulations before the policy can respond to a claims payment. A business that has not been approved by law is deemed to be illegal in its trade, and policy clauses will typically stipulate that the insured activities be legal such that the insured can exercise it’s rights to chase for its receivables, pursue claim or even be a plaintiff when fighting for disputed debts in the course of its business.

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