Month: February 2021

One factor that influences the establishment of startups is a readily available market, often associated with a nation’s population. So, why has Singapore, an island of 5.6 million people, become a hot spot for entrepreneurs? Among other things, Singapore’s innovative policies, ease of starting businesses, strategic geographical location, favorable commercial insurance available, and government subsidies have been linked to the growing number of startups. Interestingly, Singapore does not just see a boom in business startups, but the number of successful startups is also rising. 

Michael Reilly, the following article, discusses ways in which insurers can effectively provide business insurance for small businesses. 

How Insurers can make the process of acquiring commercial insurance easy

“Small commercial insurance is a highly desirable market, and one that is going through a digital transformation. In order to win big in small commercial, carriers need to create winning digital experiences, significantly improve the efficiency of core operations and create category killers by launching new direct channels.” Read more here

All businesses face some form of risk. This is why commercial insurance is necessary for all startups, including those in the tech industry. For most businesses, it is not a question of whether they need insurance, but when to get insurance. Ideally, a startup should seek insurance as soon as it opens its doors for business. However, what kind of insurance does a company providing a service that is sometimes invisible get? Insurance companies have come to appreciate the complex nature of tech commercial insurance, so most have designed specific industry policies. 

Even though tech companies provide a unique service, they share some insurance policies with other businesses. In the following article, the author discusses insurance covers that all businesses need. 

Important Insurance Covers for all Businesses in Singapore

“Often mistaken simply as a regulatory requirement, business insurance is not only about protecting you or your business. It is also a way of protecting your employees, your suppliers and even your customers from some of these threats.

Think about the consequences should an unfortunate fire destroy your retail establishment and you are not insured. What about a delivery employee who meets an accident on one of his/her delivery assignments?” Read more here

Even though tech companies mostly provide goods and services that are not tangible, business insurance policies cover all kinds of businesses and are necessary for all startups. These include covers for property, employees, and legal liability. While property and employee insurance are essential, one of the policies that tech companies cannot run away from is legal liability insurance. As much as technology has helped improve how businesses are run, the risks have increased. Tech startups need to take legal liability insurance to safeguard against compensation costs from legal cases. 

In the next article, the writer focuses on a range of commercial insurance issues, including cost and the importance of protecting your business. 

Why does your business need commercial insurance?

“Commercial insurance protects businesses and their employees from financial loss in the event of a catastrophe that’s covered by the company’s insurance policy. Commercial insurance is a general term referring to a number of specific types of business insurance coverage that protect a company in the case of accident, disaster, crime or liability. Business owners need to assess the risks their company faces and choose commercial insurance policies that protect against those specific risks.” Read more here

Are you contemplating whether business insurance is necessary for your business? It is natural for a startup to weigh the benefits against cost because the capital flow is usually a problem in the first years of business. However, your business will be in a worse financial situation if you have to pay out of pocket your property is damaged or stolen. Even worse, you may end up losing your business entirely if demands for compensation far outweighs the company’s financial ability to cover the costs. 

One reason for startups failing within the first three years of operations is the absence of business insurance. Some entrepreneurs, unfortunately, underestimate the need for commercial insurance. In some cases, some pick the insurance they feel the business needs immediately. The challenge with this is some risks are often overlooked. When disaster strikes, the business is not cushioned against costs that insurance companies would have covered had the startup taken cover against the various risks. 

The decision to take commercial insurance may seem obvious for every business. However, for small business owners, it could take weeks before they decide to insure their business. This doesn’t mean they don’t appreciate the importance of business insurance. For many, whether they can spare the cash for commercial insurance when they have other pressing issues is the question. Undoubtedly, commercial insurance greatly benefits small businesses. It is a lifeline that many small businesses initially overlook because of cost, but should there be a crisis, commercial insurance will protect against financial ruin. 

The writer of the following article analyzes some commercial insurance policies that small businesses need. 

Business insurance policies for small businesses

“So, you have just started a small business here in Singapore. 

Your business has been registered (Congratulations! That’s the hard bit!) and you need to get all of the details in place. 

The team at Expat Insurance in Singapore is here to help you through the next tricky bit, getting the right business insurance in place to protect you and your teams.” Read more here

When choosing which business insurance to get for your small business, you need to seek protections beyond assets. While these policies are important for protecting the against losses, the business is still exposed to other risks. For example, a Director and Officer Insurance policy protects business owners against claims, and no, this policy is not just for large corporations. Examples of claims that this policy protects against include discrimination and wrongful dismissal. 

In the next article, the writer discusses the various classifications of business insurance. 

Broad categories of commercial insurance

“As you start a business, be sure to protect your new venture and the time and money you’ve invested in it. By simply incorporating a business or forming a limited liability company (LLC), you help protect your personal assets from business debts and liabilities. But purchasing the correct type and amount of business insurance is another key layer of protection. This article helps you understand the different types of business insurance policies available.” Read more here

Since choosing an appropriate policy for a small business is a daunting task for most business owners, it is best to narrow down the policies into four broad categories. The various commercial insurance policies fall under business property insurance, liability insurance, automobile insurance, and umbrella insurance. If you wonder what policy to choose and what you can leave behind, you can see if your business falls in any or all of these categories. Of the four categories, business umbrella insurance supports all the other policies since it extends coverage for business losses above the other policies’ limits. 

In the following article, Lance Teo analyzes various insurance companies in Singapore and what makes them stand out. 

Things to consider when choosing an insurer

“Are you looking for ways to protect the interests and assets of your business? If so, we strongly recommend getting your hands on the best business insurance in Singapore, as it’s a good place to start.

If you’re clueless as to where to avail of the best business insurance in Singapore, though, we have you covered. We looked all over the island in search of the best business insurance in Singapore that all business owners should check out.” Read more here

For small businesses, the challenge is not only in choosing the right business insurance but also for the best insurer. Since the insurance industry is quite competitive in Singapore, various companies are marketing their brand to be as unique and beneficial as possible. Some of the best commercial insurance providers’ qualities include the availability of teleconsultation services, customizable plans, a range of business insurance policies, and a smooth and quick compensation process. 

Choosing a great business insurance policy is the first step to take when it comes to protecting your small business. However, the policy is only likely to be beneficial if the provider is ready to provide compensation quickly. Before signing the dotted line, ask the insurer how long after an incident you should expect a fulfilled claim. Additionally, you should also choose an insurer offering policies that are easy to understand and one that offers details of what the policy covers and what it does not. 

Being a new business owner is exciting. You manage your own time, make independent decisions on where you want your business to go, and even better, working long hours will no longer seem too much if it proves worthwhile. Unfortunately, you also take on more responsibilities. If you have employees, they now depend on you. You also have to choose the best commercial insurance policies to protect your business. You need to analyze the risks your business is exposed to and the protection you can put in place to cushion your business financially. 

In the following article, Maria Kindness  discusses the different types of commercial insurance and how to determine which one works for you. 

Tips on how to choose business insurance 

“Commercial insurance is a general term that covers lots of different types of insurance, such as public liability insurance, employers’ liability insurance and professional indemnity insurance. These types of insurance policies protect you and your business against claims resulting from losses, injury and even death. It can ensure you against claims made by employees, customers and members of the public.” Read more here

There are several commercial insurance policies, and it can be a little confusing for a new business owner to determine which one to invest in. Even more worrisome is if the business is not in a great financial position. Before choosing a policy, you should ask yourself a few questions. For example, do members of the public visit your business premises? Do you use business vehicles to transport products or personnel? Do you have business equipment and stock to protect? What risks does your business face daily? You can then find commercial insurance that provides a solution for the issues these questions address. 

In the next article, the writer defines commercial insurance and what a beginner should expect when acquiring one. 

What to expect when seeking business insurance

“Business insurance exists to protect your business from financial loss caused by specified events. There are different policies that come into play depending on the circumstances of the loss.

Overall, commercial insurance protects businesses from liabilities such as lawsuits from third-parties, like customers or those they entered a contractual relationship with, lawsuits from clients, injuries to employees or customers, and damage or theft of business property.” Read more here

When looking for business insurance coverage, it is best to know what to expect. Firstly, if you have ever taken personal insurance, then you will find some similarities. For example, each coverage will have a limit. For example, in case of a fire or theft, there is a limit to the amount of money the insurance will offer as compensation. You’ll also discover that some liability policies have deductibles, while others don’t. This means that you will need to pay a deductible amount in some instances, and the insurance will pay the rest of the claim. In other instances, the insurer will pay full compensation. You should also look out for exclusions in the policy coverage. 

In the following article, Terrence Goh discusses the different types of commercial insurance you might need. 

Popular business insurance policies

Maintaining adequate insurance should be an important part of any business plan, especially if the company is a smaller enterprise. Even though there are many types of insurance available in Singapore, the following policies will provide your company with all-round protection: 

Work Insurance Compensation (WIC) insurance

This insurance covers the liability of an employer to pay compensation to their employees who suffered work-related injury, occupational illness or diseases in accordance to the Work Injury Compensation Act. Read more here

When running a business, you should remember that disaster can strike at any time. It could be theft, a fire in your warehouse, an accident when moving goods, or a natural disaster could strike. Some common commercial insurance policies include property insurance, legal liability, business interruption cover, and employee insurance. Some insurance companies sell the policies individually, while others offer a package covering most of the business’s risks. 

It is best to determine how insurers structure their policies, what they include and exclude, and the cost benefits of requesting a package over having multiple covers. All business owners should ensure they read the fine print before signing on to any policy. For example, find out what items are excluded in the policy. Unfortunately, many people hardly ever ask about exclusions, only to get less than expected during compensation.