Singapore is the country that can turn anyone from rags to riches. It is a land of opportunity for all entrepreneurs, big or small. However, like many countries, Singapore has its acts and rules for doing business. Employee act in Singapore is quite stringent and needs to be followed by any business house. One of the key sectors that much stress is given is business insurance. It is a violation of the law if an entrepreneur does not have business insurance. The country’s government can find a substantial amount and even put the entrepreneurs behind bars if any violation comes to their notice.
Owing to the local laws, many best insurance companies are extending their bouquets of various insurance plans and packages. They have come up with some of the best business package insurance that can mitigate the risk factors and other occupational hazards to a large extent. It is time to consider some of the factors before signing a business insurance policy with one of the best institutions operating in Singapore.
8 Top Considerations
- The local law –As per the country’s law, every entrepreneur has to protect their employees, and the most significant two of them are basic health insurance and work injury compensation. There are many businesses that involve a high risk of working atmosphere. The Singapore Government had introduced the WICA or Worker Injury Compensation Act for local or overseas employees. Failure to have business package insurance for the employees can attract a penalty of S$10,000 or a jail term of 12 months.
Again, it may so happen that the employees have to travel by car for a long-distance for official work. Therefore, car insurance in Singapore is gaining popularity day by day to provide some benefit to the employee in case of any fatal accident. The best insurance packages also cover basic health insurance. It is not only the mandatory CPF contributions that the employers have to make, but many employers buy an additional insurance policy for their employees to safeguard their interest more.
- Risk evaluation –All business has its own risks and liabilities. Therefore, one should gauge the risks involved in their specific field of work, the legal liabilities attached to the risks, and select the best package. For example, in a construction company, the employees take many risks. Similarly, a towing company works with cars. Therefore a proper insurance plan should be selected. Car insurance Singapore can cover the risk involved while working in accident or breakdown sites. It also covers any injury to the employees while on official duty and to the vehicle that rushes to the spot. As an employer, one should calculate the right balance between the cost and competitive benefits.
- Safeguarding against legal liabilities –No matter the type of business, legal liabilities are involved in all business. It may be loans, mortgages, or some odd situation due to the negligence of the employees. Anything can make an entrepreneur bankrupt. Therefore, one should have some provisions to safeguard legal liabilities. One can get some of the best insurance packages from top-notch insurance houses and stay afloat in tough times.
- Owning a commercial property –If you are owning a billion-dollar commercial property or having an own office or shop space, having insurance can cover up the damages against any act of goods like earthquakes, fire, or any other force majeure conditions. Often, employers or commercial property owners cannot cope with the destruction and close down. An insurance policy can stop them from going bankrupt and pull down the shutters.
- The type of business –Each business has its own pros and cons. A restaurant has a different set of risks and liabilities than a financial institution like a bank dealing in the money market. Accidents to customers can happen by slipping on water spillage in a restaurant. Again, cash can be looted from a bank or lost during transportation. Defining the type of business one owns or intends to start, the insurance package should be considered.
- The premium –All insurance companies in Singapore give the same facilities with the same premium. One should compare every top company’s policies and select the one that charges a lesser premium but gives added coverage. This should be done judiciously. Often, employers pay hefty premiums, but many areas stay uncovered. Therefore, identifying the key areas and getting coverage with a competitive premium should be one of the specific considerations.
- The ease of getting claims –Many insurance agencies talk big while securing clients, but they turn a blind eye in case of a claim or delay the case. It is best to avoid these insurance types and sign the deal with the most reputed one, which attracts fewer premiums and settles the claims without delay. A little surfing on the internet and reading the reviews help elect the best company for insurance considerations and coverage. The financial health of the insurance agency should be another factor for consideration.
- The type of professional engagement- One of the significant considerations for doing business insurance is to get covered for professional engagement and safeguard against legal expenses in case of civil suits. Business insurance not only protects manufacturing, commercial property but also includes intellectual property. A lawyer or a chartered accountant can get easily covered for their professional work even if they work independently and work from home. The expenses of civil suits for the professional are covered by the best insurance agencies operating in Singapore.
One should not lose the business liquidity for the liquidity crunch of the insurance agency.
One should consider the above factors while considering business insurance for their enterprise in Singapore. Apart from the local mandatory laws and acts, one should address other factors mentioned above and select the best package with a lesser premium. It is best to stay insured while doing business in Singapore to meet the legal expenses if any and also to follow the rule of the land.