Choosing Business Insurance for a Tech Startup in Singapore

choosing business insurance for a tech startup in Singapore

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.