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Business Insurance

Business insurance includes a broad range of policy options designed to protect a business from financial loss. Every commercial operation has its own unique set of risks, which means a commercial insurance policy must be tailored to the business.

Many factors, from the size of your company to the number of workers you employ, the materials they handle and whether you have business vehicles, will determine the specific coverage you need to mitigate risk and protect your company’s financials.

Many business owners find that they must turn to a number of different insurance companies to get all of the coverage needed to cover their risks. When you work with Generalinsurance.SG you can get all of your business insurance policies from one office.

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Types of Business Insurance

Business Interruption Insurance

Covers the loss of income that a business suffers after a disaster. The income loss covered may be due to disaster-related closing of the business facility or due to the rebuilding process after a disaster.

Commercial Vehicle Auto Insurance

Covers risks attached to commercial vehicles used for business purposes while being driven or parked and covers your business’s legal liabilities to other road users. Comprehensive or Third Party only options are also available, depending on the age of the vehicles.

Contractors’ All Risks

Cover for property damage and third-party injury or damage claims, the two primary types of risks on construction projects.

Cyber and Data Insurance

Essential in helping your business recover after a data breach, with costs that can include business disruption, revenue loss, equipment damages, legal fees, public relations expenses, forensic analysis and costs associated with legally mandated notifications.

Directors and Officers Insurance

Gives financial protection in the event you are sued personally. D&O insurance protects you against claims made against you or your co-directors within the scope of your everyday business.

Equipment All Risks

Covers your machinery and equipment used for the running of your business against physical loss or damage against unforeseen and sudden physical loss or damage from any cause other than those specifically excluded.

Fire & Extraneous Perils

Fire & EP Insurance provides funds to cover your business in:

  • Reinstating a severely damaged building
  • Replacing and repairing damaged items, allowing you to continue your business with a peace of mind knowing that your assets are safely guarded.
Foreign Workers Medical Insurance (FWMI)

Cover for a foreign worker’s medical expenses, including hospital bills arising from treatment for causes that may not be work-related.

As an employer, you are required by law to have FWMI insurance coverage of at least $15,000 per year for each Work Permit holder.

The insurance should cover inpatient care and day surgery, including hospital bills for conditions that may not be work related.

 

Group Insurance

Coverage to a group of members, usually comprised of company employees or members of an organization.

  • Group Personal Accidental Insurance
  • Group Hospitalisation & Surgery Insurance
  • Group Dental Coverage Insurance
  • Group Critical Illness Insurance
  • Group Travel Insurance

Group health insurance members usually receive insurance at a reduced cost because the insurer’s risk is spread across a group of policyholders.

Industrial All – Risk

Coverage is provided for the insured items that are physically lost, destroyed or
damaged by unforeseen and sudden accidents, other than by those excluded
under the policy.
For example:
• Real property (buildings, including fixtures and fitting)
• Personal property (all other contents including furniture and any other
equipment that is in the care and control of the insured)
• Stocks in trade

Marine Cargo Insurance

Insures property while in transit against loss or damage arising from perils associated with the navigation of the sea or air and subsequent land and inland waterways.

Marine Hull Insurance

Protects vessels against damage and destruction of hull, machinery, fittings and freight. A range of risks such as fire or explosion, sinking, capsizing, derailment, burglary, jettisoning, piracy, earthquake, volcanic eruption or lightning is covered by the policy.

Managing Agent MCST Insurance

Insurance policies managing agents of MCSTs (Management Corporation Strata Title) take up to protect the building and their properties:

 

  1. Fire insurance (All risks) for the structure of the building.
  2. Public liability (especially for commercial building).
  3. Contractors All Risks (CAR) insurance for landlords who are renovating.
  4. WICA (Work Injury Compensation Act) Insurance
Performance Bonds
A performance bond is issued to one party of a contract as a guarantee against the failure of the other party to meet obligations specified in the contract. A performance bond is not insurance. If there is a claim against the bond by the obligee, the surety will pay the amount of the bond to the obligee, but they will look to the principal to make good on the amount paid out. Performance bonds are only given to financially stable firms.
Plate Glass Insurance

Covers accidental breakage of glass while situated at the insured’s premises from any cause other than those specifically excluded in the policy.

Product Liability Insurance

Protects against claims of personal injury or property damage caused by products sold or supplied through your business. It is designed to help protect your business by ensuring that if this happens, you don’t have to pay any legal or court costs.

Professional Indemnity Insurance

Cover compensation payments and legal fees if a business is sued by their client for a mistake they’ve made in their work. The compensation payment will usually take into account the financial loss that the client has suffered.

Public Liability Insurance

Covers the cost of legal action and compensation claims made against your business if a third party is injured or their property suffers damage while at your business premises or when you are working in their home, office or business property.

Trade Credit Insurance

Protects manufacturers, traders and service providers against losses from non-payment of a commercial trade debt. Trade credit insurance can prevent bankruptcies, help companies manage credit, and even present opportunities for business expansion in the increasingly connected global marketplace

Work Injury Compensation Act (WICA) Insurance

Covers your employees who suffer an injury or medical condition by accident due to work. As an employer, you are liable to compensate your employee, regardless of who was at fault, even if your employee no longer works for you.
It is required by law to have WICA cover in Singapore for your local or foreign employee who is under a contract of service or contract of apprenticeship, regardless of salary, age or nationality.

It doesn’t cover:

  • Independent contractors and the self-employed.
  • Domestic workers.
  • Uniformed personnel – members of the Singapore Armed Forces, Singapore Police Force, Singapore Civil Defence Force, Central Narcotics Bureau and Singapore Prison Service.
Property Insurance

Provides protection against most risks to property, such as fire, theft and some weather damage. This includes specialized forms of insurance such as fire insurance, flood insurance, earthquake insurance, home insurance, or boiler insurance.

Frequently Asked Questions

How Does Business Insurance Work?

Business insurance is a contract between the insurance company and the business. The insurance company agrees to share the business risk with the business entity in exchange for premium payments. 

In the event of a covered loss, the insurance company pays for the financial losses the business incurs up to the limit of the policy after the deductible amount is paid by the business filing a claim.

At the time of a loss, the business will typically file a claim. If a fire destroys a portion of the business premises, for example, the company will file a claim against the property insurance policy. 

An adjuster will assess the damage and process the claim. The company will then receive the appropriate amount of compensation for the loss.

There are many different scenarios with regard to business risk and how insurance claims are filed. For example, in the event that the incident is a loss suffered by a customer of the company, the injured party will likely file a claim against the businesses’ liability policy. 

How the claim is processed depends upon the size of the claim, whether the matter can be settled with an insurance payment, and if the claim results in a lawsuit.

What Does Business Insurance Cover?

Business insurance coverage for a commercial operation can include the following and more:

  • General liability insurance: Covers third-party liability claims for injuries to other people.
  • Professional liability and malpractice insurance: Covers professionals against loss due to negligent professional duty, wrongful acts, and advice and services that lead to another person’s loss or injury.
  • Product liability insurance: Covers against faulty products and damage, illness, injury or death that may occur from using a faulty product.
  • Property insurance: Covers loss and damage to your commercial business property due to fires, storms and other causes.
  • Commercial vehicle insurance: Covers commercial vehicles and drivers for collision, liability, property damage, personal injury and “comprehensive” (now known as “other than collision”).
  • Workers compensation: Covers your employees if they become ill or injured while working on the job.
  • Loss of income: Covers your business expenses such as rent and employee wages if you can’t operate your business.
  • Key person insurance: Covers loss of income that may result from the head of the business or other key personnel becoming incapacitated or passing away (also known as key man insurance).
  • Cyber-crime insurance: Provides protection for risks due to Internet use and online communications.
  • Records retention policies: Covers loss of important data and financial records.
  • Speciality coverage: Insurance that covers various specific business risks, such as those of landlords, farmers, and commercial operations that put on one-day events, such as seminars or concerts.
What Does General Liability Insurance Cover?

General liability insurance provides insurance protection for a company’s assets, financial obligations, legal defence, and any settlements or judgments awarded to an injured party. 

It may also include claims for copyright infringement, false or misleading advertising, or libel and slander. If a patron is injured in some way in the course of doing business with your company, your general liability insurance will provide coverage.

Is Business Insurance Required by Law?

Business insurance is required by law, but only under certain conditions. The following business insurance is required by law if it is applicable to your situation:

Workers compensation insurance (WICA): If your business has employees, you are legally obligated in Singapore to carry workers’ compensation insurance through commercial insurance.

 

What Business Insurance Do I Need?

Depending on the nature of your business and any insurance which you are legally obligated to carry, the following types of business insurance should be considered essential:

  • General liability insurance: Coverage against accidents, injuries and negligence claims
  • Product liability insurance: Coverage against product defects
  • Professional liability insurance: Covers professionals against malpractice, negligence or errors
  • Commercial property insurance: Covers against damage to your business property, such as from a fire or a severe storm
  • Business interruption insurance: Protects your business if you are no longer able to conduct your business because of a loss
  • Home-based business insurance: Covers against general or professional liability.

Because commercial insurance needs to be tailored to each business based on risks, it is critical to work with an agent who will get to know your company and ensure that your coverage adequately protects your business investment.

Does Business Insurance Cover Lawsuits?

Business insurance covers lawsuits as long as you have the appropriate business liability insurance for your situation and enough liability coverage to pay your legal costs. 

To ensure that enough liability coverage is in place for extreme circumstances like a lawsuit that exceeds $1 million in damages, many businesses buy a commercial umbrella liability policy.

Certain liability exclusions also apply, such as if an injury or damage was expected, or was caused intentionally. Some policies also have something called a “workmanship” exclusion, and some exclude coverage of punitive damages.  

Liability insurance is available in many different forms, including:

  • General liability
  • Professional liability, “errors and omissions” and malpractice
  • Directors and officers liability
  • Product liability
  • Premises or property liability
  • Employer’s liability
  • Employment practices liability
  • Environmental and pollution liability
What Is Errors and Omissions Insurance?

Errors and omissions insurance (or “E and O”) covers a business for a service rendered which did not have the expected or promised results, or which results in a loss or personal injury suffered by the person receiving those services. It also covers situations where the individual or company failed to render service at all. 

These are known as errors and omissions. As an example of errors and omissions insurance, if a financial advisor provided investment advice that resulted in a client’s financial loss, those circumstances could result in an errors and omissions liability claim.

This type of insurance is also known as malpractice insurance (for medical practitioners) and professional liability insurance for practising lawyers and other professionals.

What is D&O insurance?

Directors & Officers insurance policies offer liability cover for company managers to protect them from claims which may arise from the decisions and actions taken within the scope of their regular duties. As such, D&O insurance has become a regular part of companies risk management as it protects corporate directors and officers in the event that they’re personally sued for actual or alleged wrongdoing when managing a company.

What is the difference between D&O and E&O insurance?
The main difference between E&O and D&O Insurance is the type of work covered. E&O is concerned with the product or service that the company offers, while Directors and Officers Insurance focuses on management decisions. For example, a real estate agent failing to complete closing documents could become an E&O claim.

Other Insurances

Travel Insurance

Stay protected overseas with travel insurance that protects you, your family and/or your employees.  Single trip or Annual multi-trip insurance.

Home Insurance

Cover your Home with Fire and Contents Insurance.

Health Insurance

Cover yourself for Critical Illness, Hospitalization & Surgery, Personal Accidents.

Disclaimer: Shaun is a registered general insurance agent with PromiseLand Brokers in Singapore. Generalinsurance.SG does NOT bear any responsibility for any decisions consumers or website users make, should they rely on the information they have obtained, directly or indirectly, from this website.