Types of insurance every company in Singapore needs
3 minute read
When starting a business in Singapore, it is important to take note of the top insurance that your business needs. By having such protection in place, it will allow you peace of mind to run your business seamlessly.
At Sleek, we have partnered up like minded insurance partners to help all off our clients get the most suitable and affordable insurance for their businesses.
Below we list different types of insurance all Singapore companies should consider:
1) Professional Indemnity insurance
Professional Indemnity provides coverage against legal liability arising from acts of negligence based on profession. This insurance is important for people who have contracts with large clients who can afford to take legal action against you, has overseas contracts in the US, EU or Australia or outsourced work to subcontractors which you are liable for. If you are doing work for a large client, you are most likely required to get this insurance. It covers the PR cost, legal defense costs and damages.
Do take note that different insurers cover a breach of contract and errors by subcontractors differently.
You may also be advised to add on more clauses and it is important to let your broker know about it. Some additional clauses could be:
2) Directors and Officers Insurance or Management Liability insurance
This insurance automatically covers all directors, officers and anyone who makes an authorised management decision for any error in their management & fiduciary duty. This insurance is important for people who have external investors, taking over a distressed company, under government regulation (MAS) or planning to raise funds through equity or a loan. This insurance is likely required if you are raising funds from an institutional investor.
What cost does it cover?
It may not cover the following:
Most claims made are from investors, senior and key employees, during insolvency or due to breach of government regulation.
3) Public liability Insurance or Commercial General Liability
Public liability insurance (also known as commercial general liability) covers any accidental bodily injury or damage to a property that has been made during your business operations. This insurance covers legal defense costs and damages.
Who is this insurance important for? If you handle your customer’s properties like – repair, installation or servicing business or if you are dealing with people in the food, education or childcare industry.
If you are planning on renting an office space or working with large MNCs, your landlord/client will likely require you to get this insurance. You may also be advised to add on more clauses and it is important to let your broker know about it. Some additional clauses could be:
4) Work Insurance Compensation
This insurance covers the liability of an employer to pay compensation to their employees who may have suffered work-related injuries, occupational illnesses or diseases in accordance to the Work Injury Compensation Act (WICA). Work Injury Compensation insurance is compulsory for all employees doing manual work, as well as all employees earning $1,600 or less a month.
What can be claimed under WICA?
5) Commercial Business Package Insurance
Business package insurance is a comprehensive multi-line insurance solution that can be tailored to meet the needs of your business. It often provides a more affordable and critical defense against elements that can disrupt or damage your business. Common coverage within Commercial Business Package insurances include:
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