Whenever one decides to set up a business in Singapore, every entrepreneur’s significant considerations are business insurance.
Businesses are prone to many risks like loss or damages of machinery, fire, car crashes during working hours and other accidents, and many more. Insurance can save entrepreneurs from damages against any lawsuit by covering themselves with insurance related to business. In other words, we can say one can say that this type of insurance negates the impact of the company in all major risks, including bankruptcy.
However, many insurance coverage types can save the entrepreneur or employees from adverse economic situations and stay afloat. Every country or insurance company has certain rules, regulations, and guidelines for various kinds of insurances through which an entrepreneur can stay safe and take more challenges in the fiercely competitive markets. Owing to the demand for business insurance, many good institutions working hand and gloves with various industries in Singapore. There are various kinds of business insurance that can cover the risks. They even include car insurance while on official duty. Some are mandatory for getting the business license to start a venture in Singapore, while others are optional.
The types of Business Insurance to work without tension
AS an entrepreneur of a big organization or a small retail store in Singapore, one can think of the insurances for business interruption, property insurance, workers compensation insurance, liability insurance, inventory insurance, or business package insurance. There is specific insurance coverage for every field, and they are quite business-specific. If one has a medical clinic, the insurance will differ from the one having a retail store. The best insurance institutions segregate the market in various sectors to offer a perfect need-based package to the clients. Let us discuss some of them in detail.
- Business interruption insurance –Nobody can predict when any organization will face some sort of legal battle with the financial institutions, banks, or disruption in working. Consider the present day scenario of the pandemic. Many organizations were forced o temporarily shut down their show due to the pandemic. The business was interrupted, and many of them were on the verge of bankruptcy. As business insurance to protect the loss due to unforeseen interruption can prevent loss and stay afloat with working capital in hand when the market becomes normal.
- Property insurance – Again, one of the major hazards of any business is safeguarding the property. It can be land and building, inventory, or plant and machinery. Danger always comes from the safest corner. There may be a fire, a flood, or an earthquake, or a riot and arson. Having comprehensive property insurance can cover up all the damages and keep the entrepreneur monetarily safe and tension free. Even perishable inventories like food and medicines requiring the cold chain process for transportation have scope for insurance cover by the reputed insurance institutions.
- Liability insurance – In any business, some silly mistake by any employee or the owner can lead to a compensation payment. It can be public liability like sales or distribution problems, damage to the interior designs of the business place, bodily injury, and many more. Again, the directors or the proprietor of the company may make some bad key decisions that can lead to financial loss. If one is working as a professional like the auditors, legal advisers, or accountants, one needs to stay safe with professional indemnity insurance that can save them from unwanted negligence. The liability reduces to a much extent with this type of insurance.
- Health insurance – It is mandatory for employees working in Singapore to come under basic health insurance. Entrepreneurs can buy additional insurance coverage apart from the MediShield scheme. Again, Employment or S pass holders are not covered by MediShield. One should make additional provisions for these types of insurances as they are mandatory in nature.
- Compensation for work injuries – Accidents of the employees can happen at any time. It may be a car accident while the employee is on duty, a fatal accident due to malfunction of machines, or a fall from the height of the construction and renovation worker. As an employer, one has to pay compensation and is covered by the WICA or Work Injury Compensation Act of Singapore. Therefore, it is mandatory to go for work injury compensation, or the authorities can prosecute the employer, decide a fine, and even send to jail or slap both.
- Self employed working from home – Even if one is a professional working from home, particularly in these days of new normal, the working equipment should be insured. Burglary or machine malfunctions can happen at any time, and proper insurance to cover their replacement costs can be easily claimed from the best insurance agencies. The auditors or the lawyers can get their digital gadgets and documents covered for any loss through this type of coverage.
The process
It is best to consult the best financial institution to access the risk that involves the business and get the proper insurance coverage. The best insurance agencies look into all aspects of business; explain the rules, regulations, and acts and do proper risk management and guide the entrepreneur to select some of the types of business insurances mentioned above. Apart from the above general or mandatory insurance coverage, the best insurance company extends their services to certain special fields. Any earlier claim can increase the rate of the premium for renewal or starting a new policy. Therefore, one should choose the policy judiciously consulting an expert.
To Sum It Up
Doing business in Singapore is not rocket science. However, one should follow the acts and the rules. One of the primary concerns apart from venturing out should be insured, and as an entrepreneur, one should never ignore it. The best agencies have a variety of insurance policies in their cart. Select them judiciously to have a good night’s sleep without worries. Insurance must stay afloat in the competitive market as nobody can predict the coming danger from any corner.