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.