Business insurance is meant to cover up the financial constraints of business distresses that may come from any corner. It is a policy that can work as an umbrella to all entrepreneurs having business in Singapore. Some of them are mandatory, while others are optional to operate a business in and from Singapore. If one thinks about what is a business insurance policy and how it can help an employer in hard times, it is time to discuss it in some detail.
One can say that such a policy can bail out a business house, minimizing financial losses. It can be a group personal accident policy, fire insurance, inventory insurance, business risk insurance, group life insurance, and many more. There are some of the best insurance agencies operating in Singapore have many types of business insurance policies with several beneficial features that can keep the industrialists afloat without much financial loss.
The segregations in policy plans
Best insurance institutions have a bouquet of policies that can safeguard any organization and the owner or the directors from facing financial losses and pull their shutters down. While in business, one has to gauge the risks and the economic hazards that can drain the coffers for any untoward incidents.
- Property Insurance: One may be operating from a rented space or own property. The loss to the property and the office inventory can happen any time due to any force-majeure conditions like earthquake, vandalism, or any physical loss of the inventory, stocks, and plant and machinery. Property insurance can cover up the expenses of offsetting these lose getting the claims, and start afresh without much financial loss to the paid-up capital.
- Insurance for consequential loss: Any business can face consequential loss for business interruption due to flood, fire, or explosion. It is said that danger comes from the safest corner without any notice. Business interruption insurance can cover up the expenses of restarting the business in full swing without any financial crunch on the working capital.
- Public liability policy: The legal liabilities of doing business, bailing out the employees and representatives should be repaid with this policy type. The legal expenses to fight the case in court are too high, and every business should care for the employees or representatives without shrugging off the legal liabilities. Getting a cheapest car insurance quote and insuring the vehicles and the employees operating them during working hours is always the right decision. It builds a sense of confidence amongst the employees and protects the company from any financial loss in case of any untoward incidents.
- WICA Policy: According to the WICA or Work Injury Compensation Act of Singapore, it is mandatory to ensure all employees and provide compensation in case of any work-related accidents or injury. Without this policy, any entrepreneur can be fined or jailed as per the country’s present rule. The government of Singapore is quite strict in this regard, and WICA policy is one of the conditions of starting a business and recruit employees. It may be contractual employees or apprentice; the employer has to get the employee covered under this insurance policy irrespective of the salary structure.
- Policy against professional liability: It is one type of system that can cover up the claims and give financial protection to any organization during the settlement of compensations, expenses of civil liabilities against claims for inadvertent faulty professional services. Pathological labs often prefer this type of policy as the clinical results are often challenged, and compensations are claimed.
- Insurance for Product Liability: A manufacturer or a supplier can be held legally responsible for any property damage or any bodily damage due to faulty workmanship. The policy can cover up the liabilities while using specific products that need much care for operation and maintenance. Often, the onus of any fatality comes to the manufacturer, and compensation needs to be paid. The policy covers these types of economic hazards.
- Cyber Insurance: With rapid digitalization and internet penetration in all corners, the data breach is one of the companies’ major concerns. The strategies or the drawings can be stolen, corporate information gets leaked and even product and operation planning is hacked. Companies need to save their financial losses due to data breaches. Cyber or data breach insurance can protect the company from potential online loss while engaged in business.
- Insurance for trade credit: Business houses in Singapore often think to market their products internationally. The account receivable from the overseas market can be insured with this policy if there is any payment breach. The receiving entity can be insolvent after the time of supply, or there can be a political disturbance in the country of supply. The trade-credit insurance policy can save the supplier with this policy cover.
- Insurance for Directors and high-level office bearers –The managerial liabilities are insured with this type of policy. Any claim arising from taking the wrong decision during regular duties by the management can be settled through this policy.
- Insurance for coping business interruptions – It is common for many businesses to face some interruptions. It can be a fatal accident in the workshop, strike for some demands by the workers. The business of the organization gets interrupted. It is more common for companies with physical existence like a factory, a warehouse, or in the docks or any manufacturing unit. The best insurance companies in Singapore have policies to cover up the losses due to these temporary interruptions so that the financial constraints on the entrepreneur are minimized.
The above ten insurance policy is quite popular in Singapore while doing business. While few of them are mandatory are per rule, the others help any business cope with financial distress. It is better to stay financially safe by paying a low premium, taking a policy from the best insurance agency, than to close the show for the lack of funds. Stay insured to run the show after any loss without burning a hole in the pocket. Prevention is always better than cure.