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Starting a new company? We talk business insurance

Embarking on an exciting new business venture? It’s so easy to get caught up in the anticipation and hard work of getting everything ready for the big opening. Not that we want to be party poopers, but it’s important for you to take a step back and consider the type of business insurance you may need. From property insurance to medical and personal accident coverage for your employees, save yourself from unnecessary costs and concerns if things go wrong. Here, the team from Pacific Prime offers us some tips on the types of business insurance available and why they’re so important.

 

For your property

Office space business insurance
No longer worry about damages in your office

Buy property insurance for the space you purchased or rented to run your business. It will cover damages or losses including fire, theft, water damage and even vandalism.

What’s covered:

The insurance will cover your building, furniture, products and inventory, equipment and more.

Why you need it:

You will save extra costs in fixing your property if there are any damages. This type of insurance is also typically required as part of the lease contract in Singapore.

Look out for:

If your area is particularly prone to flooding, make sure your policy provides coverage for flood damage. You may need to purchase a stand-alone flood insurance policy for proper protection.

 

For your employees

Factory workers insurance
Take care of the people who work for you

Look out for your workers. Get them medical insurance so they are covered in the unfortunate event of a workplace accident.

What is covered:

Purchasing group medical insurance will give your staff access to high-quality private hospitals and clinics. (For a lower premium, you can opt for a more basic plan, but it would include only in-patient care.) If an accident occurs, employees will be able to claim medical costs, lost wages as well as a lump-sum payment for disablement or death.

Why you need it:

In Singapore, it’s compulsory to purchase work injury compensation insurance for employees that do manual labour or earn less than $1,600 per month. Expatriates in Singapore don’t have access to government subsidies in the local healthcare system so insurance is also particularly important to cover medical costs.

Look out for:

Ensure that your employees are making good use of your group health insurance benefits. Before renewing your policy, speak to a third party for advice about the usage of your policy and the expected rise in premium upon renewal.

 

For potential damages to others

Law suit insurance
Get the coverage you need if you are sued

Although they have different names, professional indemnity, third-party liability and product liability insurance serve a common purpose – that is, to cover damages to others and their property.

What is covered:

If your service-based company receives negligence allegations, professional indemnity insurance will offer protection. As for product liability insurance, it will give you coverage from lawsuits due to faulty products that cause injury or property damage.

Why you need it:

Avoid forking out huge amounts for lawsuits in the event of negligence, faulty products or accidents.

Look out for:

Ensure that you choose the correct types of insurance that are most relevant for your business. Get your insurance provider to recommend insurance that addresses your business’s needs and requirements.

 

For business disruptions

Business disruption insurance
Don’t be caught out if you face any setbacks

Businesses can come to a standstill in the event of an unforeseen disaster. Keep your company afloat with insurance that covers loss of income and expenses.

What’s covered:

Business disruption insurance provides funds to cover ongoing expenditure. These include employee wages, rent or mortgage payments, utility costs, client payments and more.

Why you need it:

You’ll still need to pay staff and cover overheads if you face a temporary setback. Without revenue coming in, make sure you have enough funds to cover day-to-day operation costs while you get back on your feet.

Look out for:

This insurance is also great for issues you might face with important business partners, such as a sudden disruption of your supply chain.

 

Don’t miss these

Delivery vehicle insurance
Get your wheels covered

You may think that you won’t need much coverage if you’re starting a home-based business, but all too often homeowner’s insurance isn’t sufficient. Also, don’t forget your company vehicles!

Take note:

In many cases, homeowner’s insurance doesn’t apply if you use your property for work, so prevent extra costs by purchasing additional insurance. Also, if you rely heavily on your company cars or trucks, ensure that you purchase comprehensive motor insurance. This will include third-party liability, which is compulsory in Singapore.

As every business is different, ensure you cover all grounds and get expert opinions on the types of business insurance you require for your new company.

 Brought to you by

Pacific Prime Singapore
#09-02A, China Square Central, 18 Cross Street

6536 6173 | pacificprime.sg

 

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