How To Get Liability Insurance For Your Small Business

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How To Get Liability Insurance For Your Small Business

Are you a business owner wanting to protect yourself from damaging and expensive lawsuits? Unsure of how to get liability insurance for your business? Are you looking for a better, cheaper, easier way to protect your company from legal liability?

This easy-to-follow guide clearly explains:

  1. The different ways you can get business liability insurance
  2. Which way helps you save the most money, gives the best protection, and is the simplest to use

There are 3 main ways business owners can get liability insurance to protect themselves and their company.

Features Insurance Agent Traditional Insurance Broker Provide: Online Insurance Broker
No. of Insurers Maximum 3 Unlimited Unlimited
Expertise Depends on agent Depends on broker, usually higher than agent 20+ years experience serving large corporations and SMEs

 

Price Industry standard Industry standard 10-25% savings on all policies, forever
Speed 1-3 week(s) for quotes 1-3 week(s) for quotes Instant quotes for all essential SME policies.

 

1-2 week(s) for complex policies

Convenience No instant services. Must schedule calls/meetings. Send text messages/emails. No instant services. Must schedule calls/meetings. Send text messages/emails. 24/7 online platform to instantly buy coverage, change policies, get advice.

 

Calls/meetings

available for more complex needs.

Claims process Depends on agent Depends on broker Easily file claims online. Receive automatic updates on claims process.

 

Expert team to act as strong claims advocate.

In-person consults Yes Yes Yes

 

#1. Use an insurance agent

Business owners can use a commercial insurance agent to purchase insurance. Most insurance agents in Singapore are focused on personal policies like car, maid, and life plans, so make sure to approach an agent with specific experience in handling commercial policies.

It’s important to note that insurance agents are only legally allowed to represent a maximum of 3 insurers. There are 82 insurers in Singapore: 60+ global insurers (e.g. the AIG’s, Chubb’s, QBE’s of the world), with another 20 regionally-focused insurers. What this means is that if you have an insurance agent source commercial insurance quotes for you, you’re probably not going to get the best prices, or the best coverage options. Agents unfortunately don’t possess the ability to conduct a broad search across the insurance market.

There are more insurance agents in Singapore than insurance brokers because qualifying to operate as a broker is much harder. Brokers have to meet much more stringent insurance experience criteria, undergo a stricter review process by MAS, and must have much more paid-up capital.

#2. Use an online insurance broker

You can use an online insurance broker to purchase business liability insurance. Provide is Singapore’s 1st online business insurance platform, exclusively focused on protecting SMEs.

If you run a small business, you should consider using an online broker to protect your company. Provide helps SME owners get the best insurance protection rapidly, and to save lots of money in the process.

Our digital platform helps business owners:

  1. Save up to 25% on all insurance premiums
  2. Buy protection instantly
  3. Get broad coverage, high indemnity policies guaranteed
  4. Get access to industry experts who will provide tailored advice, and be strong claims advocates

If you’re looking for a better, faster, and easier way to get covered, choose Provide. Get started on a quote today. (URL)

#3. Contact an insurance broker for an in-person consultation

Lastly, there’s always the traditional route of calling up a commercial broker, and having a sit-down to review your needs and get quotes. Traditional brokers will solely operate via this route.

Provide also offers in-person consults with our insurance experts. Provide’s highly experienced brokers have 20+ years of experiencing protecting all types of companies, from large corporations to small businesses. If you prefer to meet with someone over using our online platform, our industry experts will come down to meet you, analyse your business, and provide thorough coverage recommendations. Arrange an expert consult now. (URL)

What types of liability insurance should small businesses have?

There are 4 main types of liability insurance that business owners can use to protect themselves and their company:

  1. Director & Officer (D&O) Liability Insurance
  2. Work Compensation Injury (WICA) Insurance
  3. Professional Indemnity Insurance
  4. Public Liability Insurance

How does liability insurance protect business owners and their companies?

Lawsuits are one of the single most damaging risks any company – let alone a small business – can face. Defending legal claims can easily cost a small business owner half a million dollars or more. These costs could very easily bankrupt an entire business. Business liabilities can even lead to business owners themselves being declared bankrupt, or in some cases going to jail.

This table below shows how the 4 types of liability insurance, put together as a suite, will protect business owners and their companies from expensive and dangerous litigation.

Insurance Types Personal Liability

(Directors & Officers)

Company Liability
D&O Insurance Protects directors & officers personal assets from legal exposure when they are sued.

 

Also protects against cost of criminal proceedings.

Protects company when the firm pays to defend its directors & officers against lawsuits.
Work Injury Compensation Insurance Prevents directors/officers from being convicted of criminal offence for failing to comply with WICA regulations. Protects company from legal liability when employees get injured/sick from work-related causes.

 

Note: All injured/sick workers can file injury claims against their employer under the WICA act.

Professional Indemnity Insurance N.A. Protects company from legal liability when company is sued for professional negligence, errors, omissions, defamation, and more.
Public Liability Insurance N.A. Protects company from legal liability when company is sued by third-parties (like customers or members of the public) for physical injury or financial damage.

 

How much should small businesses pay for liability insurance?

For small businesses with annual revenues of less than $5 million, use the following table as a liability insurance guide. These are easy-to-follow estimates for how much liability coverage you’ll need, and how much the premiums will be.

Liability insurance guide for businesses with <$5 million annual revenue
Liability Insurance Type What It Covers Recommended Annual Coverage Premium
D&O Liability Insurance Directors & Officers personal liability $1 million Starts from $0.80/day

($300/year)

Professional Indemnity Insurance Company liability for negligence, malpractice, breach of care, and more $1 million Starts from $3/day ($1000/year)
Public Liability Insurance Company liability to third-parties for damage or injury $500,000 Starts from $0.50/day ($100/year)
Work Injury Compensation Insurance Company liability to employees for injuries/illness $50,000 per employee Non-manual staff: Starts from $25/year per employee

 

Manual labour staff: Starts from $50/year per employee

 

At Provide, we believe that businesses deserve the most comprehensive protection, delivered at the most affordable prices. That’s why all our policies cost up to 25% less, with broad coverage & high indemnity guaranteed. Our digital platform creates lower overheads, and we pass every dollar saved back to you.

Get your liability insurance quotes today for:

  1. Public Liability Insurance Quote
  2. Work Injury Compensation Insurance Quote
  3. D&O Insurance Quote
  4. Professional Indemnity Insurance Quote

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