Small and medium-sized enterprises (SMEs) contribute about two-thirds of employment and half of the GDP in Singapore. They comprise 99 percent of enterprises in Singapore. Despite their elemental importance to Singapore’s economy, most SMEs lack sufficient insurance against perils.
SMEs generally find it not easy to maintain a healthy cash flow, and hence, they are cost-sensitive. Most of them face challenges in conforming to safety, which leaves them more vulnerable to property damage, cyber threat, equipment breakdown, and worker injury. According to a survey held in 2019, about 69 percent of SMEs in Singapore had at least one work-related problem due to a lack of access to information, expertise, and capital investment.
SMEs should make sure that they have insurance coverage tailored to their unique business requirements. They can protect their business operations, employees, and assets with appropriate commercial insurance. Knowing the risks your small business confronts will help you choose the right insurance plan. Nevertheless, it is essential to know what commercial general insurance offers.
1. Protection Of Your Assets
Whether your business is retail, manufacturing, or eCommerce, it is strongly advised that your company should consider having all-risk insurance cover for protection against any business interruption caused by equipment failure, fire, theft, or any damage or loss to the assets. You can find some insurance products designed for this purpose.
With a burglary insurance plan, you can safeguard your business buildings and contents against any loss or damage brought about by attempted theft through violent or forcible entry into and exit from business premises.
Fire insurance coverage safeguards your business structure and its contents from loss or damage caused by natural disasters like explosions, lightning strikes, flooding, earthquake, and impact damage, as well as by malicious damage by vandalism, riots, strikes, and other calamities.
All Risks Insurance
Your business assets, machinery, and equipment may necessitate replacement or high repair costs due to accidental loss or damage. With the all-risks insurance cover, you can protect them from any unanticipated loss or damage brought about by fire, theft, or any other accident or tragedy.
It provides coverage for any financial loss resulting from any cause or event, whether it occurs on the business premises or in transit.
Trade Cargo Insurance
Trade cargo insurance or marine insurance helps safeguard your finished goods or raw materials in the warehouse and when being transported by land, sea, or air.
2. Protection Of Your Business Operations
SMEs can find multiple insurance solutions to safeguard their business from any public liability, business interruption, or fraud committed by employees. They include:
Public Liability Insurance
With this type of commercial insurance plan, you may shield your company from being held liable for any third-party injuries or damage to property that may occur accidentally while conducting business.
Business Interruption Insurance
Your business may incur losses from the interruption to business activities after a fire, flood, or cyclone. You can safeguard your company from those losses with the help of a business interruption insurance policy.
Business Loan Protection
The purpose of this insurance is to guard the guarantor(s) of your business loan from any loss resulting from a personal accident. The insurance can assist in paying off the outstanding loan in the event of death or permanent incapacity.
Fidelity Guarantee Insurance
Employee dishonesty or fraud can be expensive for the business. With fidelity guarantee insurance, you can cover it.
3. Protection Of Your People
Skilled employees are valuable for successful business operations and you cannot afford to lose them due to death, accidental injury, or permanent disability. With the right insurance plan, you can safeguard your employees.
Group Personal Insurance
Employees covered by this insurance plan are eligible for a lump sum payment in the event of accidental death, dismemberment, or total and permanent disability owing to any cause.
Work Injury Compensation
It is a legal necessity for SMEs to obtain work injury benefits for their employees. With this commercial insurance plan, you can cover:
- Medical expenses incurred owing to injuries at the workplace
- Medical leave wages
- Lump-sum payment in the event of death or permanent disability
This insurance plan can protect employees from any unforeseen expenses related to surgery and hospitalisation.
To conclude, commercial insurance solutions help SMEs with comprehensive risk management through suitable insurance plans that help mitigate business risk and receive necessary financial support.