questions on Business Insurance

Frequently asked questions on Business Insurance

FINANCE

We receive many questions from business owners, most of which were similar – Why do I need Business Insurance? How do I choose the right business insurance? How can I reduce costs on small business insurance?

We have compiled a list of the most frequently asked questions to help you understand more about corporate insurance better. This provides answers to many questions about corporate insurance for small businesses. It is always necessary to understand corporate insurance before comparing policies and deciding the right insurance for your small business.

Basic Information on Business Insurance

What is business insurance?

Business insurance, also known as corporate/commercial insurance, serves as a protection for small business. You may be sued if an accident occurs at your place of business. The high litigation costs, medical costs, and property damage claims is the major reason why companies require insurance.

Do I need to buy business insurance to start a business? Can I open a business without any insurance?

Starting your own business entails a certain amount of risk. While you have the desire to take on new challenges as a business owner, it is important to safeguard the assets you buy for your firm. Insurance can aid you in recouping your losses from property losses due to fire or theft and liability concerns You can have peace of mind if you have the right policies in place.

At its most basic level, insurance aids in the management of your company’s risk of loss. Spending some time with a skilled insurance expert to analyse your operational risks and best safeguard your business with the right insurance coverage. 

How much business insurance do I need?

Calculating the greatest possible claims your firm may face and purchasing the appropriate insurance coverage to guard against potential loss due to that occurrence will help you estimate the amount of coverage you need. This way of calculating the amount of insurance needed ensures that your business is safeguarded against risks that may surface in unprecedented situations and can continue to operate with minimal financial loss and business interruption.

What are the basic insurance policies needed for new/small businesses? 

Business insurance packages include a set of important coverage elements at a reasonable premium.

– Work Injury Compensation – Covers expenses from employee’s work related illness or injury

– Public Liability – Covers the costs of legal action and compensation claims brought against your company if a third party is hurt or their property is damaged while on your property or while you are working in their office.

– Business Interruption – Covers losses if your business is halted due to covered reasons, such as a fire.

Do I really need business interruption insurance?

If your company is not going to last beyond six months without doing any business, you should invest in this insurance. Both you and your employees will be paid while you recover from a disaster if you have business interruption insurance. If you don’t have business interruption insurance, you may have to hire a whole new team from scratch since your current employees will be compelled to look for other work while you are trying to restore.

What types of business insurance do I need?

The type of insurance your business needs is determined by its nature. Insurance requirements for hairdressers differ from those for contractors. If you’re seeking to insure your small business, a broker can help you figure out what kind of coverage is right for you. As an insurance broker is partnered with several insurance companies, they will be able to find and compare the best insurance policy and ensure the right one is promoted for your business.

More information on Business Insurance

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What do we do when we want to buy business insurance?

There are several approaches when looking to purchase business insurance for your small business. 

  1. Shopping around

It is essential to do comparison shopping since different insurers charge the corporate insurance at different rates. You may consider shopping for business insurance online with insurance brokers since they will be able to solicit quotes and find the best insurer with the most suitable coverage for you instead of you doing the comparisons by yourself.

  1. Adopt a risk management strategy

The actions you’ve taken to manage your company’s risks play a factor in determining your insurance premiums. For example, installing security cameras help to minimize your risk of theft or damage. You may also lower your liability risks by maintaining your property well-kept, up-to-code, and secure. By doing up a risk management strategy plan for your company, it helps your insurance broker/agent understand your concerns for your business better and find the insurance policy that best fit. 

What drives the cost of business insurance coverage?

Insurance premiums are determined by a variety of factors. The value of the firm assets you wish to insure, the number of employees, the specific hazards that the industry of your business may face, and the amount of liability protection you prefer are some of the factors to that drives the cost of business insurance coverage.

Where do I purchase insurance for my company?

There are several ways you purchase business insurance policies for your company.  One approach is to contact your agent or an insurance company that specializes in corporate coverage. Another alternative to get company insurance is to contact an insurance broker. They work with a variety of insurance companies and allows you to worry lesser about insurance and have more time for you to focus on your business.

How long does it take to get business insurance?

With the introduction of technology and its proliferation in the insurance industry, the industry is undergoing massive overhauls. Processes that required a bureaucratic approach are now available online and can be accomplished in few clicks. Many insurance providers in Singapore offer tailored business insurance with all the bells and whistles online. You can customize your insurance, read through the contract, get support from industry experts and pay for your policy in minutes. Additionally, these platforms offer document storage and renewal policies with updates to make sure your business is covered. 

What legal documents do I need for business insurance?

Ensure that you have all the documentation and information for your business when applying for business insurance. Some information needed to supply to the broker includes the number of employees, gross sales for the past year, a list of the business assets that you own and your payroll. On top of these, your insurance broker may ask you more about your business.

Work Injury Compensation Act (WICA)

What is Ministry of Manpower (MOM) WICA?

WICA allows employees to file claims for work-related injuries or diseases without having to go to take legal actions.

Is WICA compulsory in Singapore?

According to the Work Injury Compensation Act (WICA), employers are responsible to compensate their workers who suffer work-related injuries while on the job.Your employees is ensured through the payment of medical leave wages. It also protects you from legal complications. Even if you run a small business, WICA is mandated by MOM in Singapore.

To make sure you’re fully compliant with the Work Injury Compensation Act, WICA insurance would be needed if you have employees who are:

1 Doing non-manual work and earning below $2,600/month
2 Performing manual labour, regardless of salary
3 Hired under the SG United training programme

Does WICA cover COVID-19?

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WICA protects employees who develop diseases caused by biological agents, such as COVID-19, while on the job. However, WICA will not cover illnesses caused by COVID-19 if they were acquired through non-work exposure.

When can you claim WICA?

You may file a claim under WICA if you are an eligible employee and have experienced the following:
– An accident occurred as a result of and during the course of employment, and you were hurt. 
– Contracted disease while working or has injuries while out on an overseas assignment

Is medical benefit compulsory in Singapore?

When job seekers are looking for job opportunities, some common interview questions they ask would evolve around the topic of the medical benefits provided by the company. While most Singapore businesses provide basic employee health insurance and healthcare perks like reimbursement for medical and dental expenditures as part of their employee benefits package, the law does not make it mandatory for companies to provide health insurance to their employees. 

Liability Insurance

What is the difference between Public Liability and Professional Indemnity Insurance?

Public liability and Professional Indemnity Liability insurance both offer financial protection against lawsuits.

Public liability insurance protects companies from third-party lawsuits resulting from injuries or property damage caused by your business operations. Professional Indemnity, on the other hand, is a type of insurance that protects firms from lawsuits brought by clients as a result of services provided.

What type of liability insurance does my business need?

It is strongly advisable for most firms to purchase business liability insurance, which will cover the most frequent forms of insurance claims. Apart from Business Liability Insurance, it is also recommended to have Workers Injury Compensation Insurance (WICA), Directors and Officers (D&O) Insurance and Professional Indemnity Insurance.

Claims and Changes in Businesses

What if my business needs change?

There are, however, coverages tailored to your business needs. You will take on additional risks when your company expands, introduces new products or services, or purchases new equipment. It is wise to evaluate when something significant happens, or evaluate annually to look for overlaps in coverage or new risk areas.

What are some ways to keep insurance costs down?

One approach is to conduct an annual risk assessment and identify steps you may take to reduce your insurance rates. Your agent will be able to help you examine your current plans and deductibles to ensure that your coverage and limits are appropriate for your company.

Still unclear on Business Insurance?

These are the many questions most of business owners ask. If there are any enquiries on Business Insurance or you would like to schedule a 1-1 business insurance assessment, you can consider approaching insurance brokers in Singapore. They are well certified to assess your business needs and provide you with the corporate insurance you need.

Remember that business insurance is not a want or a luxury. You’ll have to pay such fees out of pocket if you don’t have the right insurance plan. Getting sued can cost far more than the cost for corporate insurance.

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