Running a Business in Singapore: The Importance of Company Insurance
Running a business in Singapore comes with countless opportunities and a fair share of risks. Unexpected events can disrupt operations and cause significant financial strain. This is where company insurance steps in, offering business owners protection and peace of mind.
Whether you are managing a startup or a large corporation, having the right insurance coverage is an essential safeguard against potential setbacks. It helps mitigate risks and ensures your business can weather challenges and continue thriving.
What is Company Insurance in Singapore?
Company insurance includes any type of insurance that safeguards companies against financial losses caused by reasons such as:
* Property theft or damage
* Harm to reputation
* Liability
* Customers defaulting on payment
* Risks affecting employees
Principal subtypes of business insurance can be classified as various types of professional liability insurance, also known as professional indemnity insurance. It can also be the business owner’s policy (BOP) that combines many kinds of coverage that a business owner needs.
Is Corporate Insurance Mandatory in Singapore?
Certain types of company insurance are compulsory, which are:
* Employer Liability Insurance
* Commercial Auto Insurance
Employer Liability Insurance
In Singapore, employer liability insurance primarily involves work injury compensation insurance, which is mandatory under the Work Injury Compensation Act (WICA). Employers must purchase this insurance for all employees engaged in manual work, regardless of their salary, and for non-manual workers earning up to S$2,600 monthly.
This insurance covers medical leave wages, medical expenses, and legal liability to pay compensation for permanent incapacity or death due to work-related injuries.
Commercial Auto Insurance
In Singapore, commercial auto insurance is essential for businesses that use vehicles for commercial purposes. This insurance covers various vehicle types, including lorries, vans, and pickup trucks, and protects against accidents, theft, and damage. It includes liability coverage for third-party injuries, property damage, and collision coverage for the insured vehicle.
Why Should You Get Company Insurance?
Companies are recommended to buy business insurance for several reasons:
* Meeting Legal Obligations
* Ensuring Business Continuity
* Risk Protection
* Peace of Mind
How to Get Company Insurance?
There are a few steps to take before you purchase your business insurance:
* Determine What Your Business Needs
* Get Professional Advice
* Assess if You Are Meeting Legal Obligations
* Buy the Insurance and Work Closely for Cover
How to Choose the Best Commercial Insurance in Singapore?
Size should be a consideration before choosing your company insurance. For example, a small business will have different insurance needs than a large corporation. Thankfully, most insurers offer various packages to cater to different requirements, and you also have our knowledgeable advisors to help with your insurance and beyond.
Get Valuable Advice From Our Experts
Corporate insurance does not just serve as a safety net for unexpected situations. Certain types, such as credit insurance, can offer a business advantage by promoting your company to investors and lenders with a lower credit risk since your insurer covers your accounts receivable.
Get in touch with our friendly professionals today for more advice on various business aspects and understand how we can assist!
Conclusion
In conclusion, company insurance is critical for safeguarding a company’s financial health, legal compliance, and operational continuity. It is a precaution and an investment in the business’s resilience and longevity.
FAQs about Company Insurance in Singapore
Most of the time, they cover these aspects:
* Automotive
* Liability
* Commercial debt
* Employee protection
* Property damage or theft
Singapore’s Work Injury Compensation Act (WICA) allows employees to claim compensation for work-related injuries or diseases without legal action. It covers medical leave wages, medical expenses, and lump sum compensation for permanent incapacity or death.
In Singapore, employers must provide medical insurance for migrant workers, specifically those holding Work Permits and S Passes. However, providing health insurance is not a legal requirement for EP holders and local employees, although many companies offer it as part of their employee benefits package.
