When you are starting a business in Singapore, it is of utmost importance that you take the time to figure out what commercial lines insurances your company requires. No matter your business venture, insurance is the first thing you should think about as it is a safety net. It will give you the comfort to run your business without any hassle. The worries that come with running a company will be eased as you can focus more on your work rather than continuously thinking about what will happen if your next step fails.
There are many different kinds of insurance available; depending upon your work, you would have to decide which ones are most suitable for your industry. Before you figure out which commercial insurance lines of business will be ideal for your company, you need to figure out what it is first. Commercial lines insurance is a type of casualty insurance policy for small companies and businesses. There are many prestigious insurance companies in Singapore near you that offers various kinds of combinations of coverage and benefit options depending upon the company’s specific requirements.
5 Types of Commercial Lines Insurance in Singapore
- Professional indemnity insurance
Professional indemnity insurance coverage is one of the most crucial insurance is that all companies must have. It protects against legal liability that can arise from negligence. For example, if you have a digital marketing company and a marketing campaign that you have recommended with market research data, it fails, leading to them suing you. You can then make use of this insurance to protect your company.
This insurance has been created because insurance companies understand that when starting, mistakes can happen. Small business needs to protect them against large clients who can easily afford to take you to court. These companies, with their economic power, can crush small businesses. Without the money to fight back, you may even have to close the company.
This is why you need insurance, which will cover not only the legal defense cost and damages but also the PR cost.
- Management Liability insurance for Directors and Officers insurance
The Management Liability insurance automatically covers all officers, directors, and anybody in the managerial position and has the authority to make decisions. This insurance has been created to be e a safety net for any error produced by the management in doing that duty. This includes their fiduciary duty. Companies that have external investors, under government regulation, or are going to take over the dresses company should have this insurance. Even if you plan to raise funds through a loan or equity or an institutional investor, you should consider taking this.
The loan will cover legal defense costs as well as damages for the injured person. PR course will also be covered along with the coverage of the entity for any employment dispute. However, it may not cover any claim related to professional indemnity.
- Commercial General Liability or Public Liability Insurance Public
The general commercial liability will cover any accidental damage to property or bodily injury, which is caused by your business operations. Any kind of injury or catastrophic damage resulting from any operational function can lead to significant lawsuits. The insurance will help cover legal defense costs to protect your company and the damages.
So if your company is the one that handles customer’s properties, for example, you run a repair or installation of appliances business, and something goes wrong with the product. The company can take you to court for damaging their property. Even people working in the food, health care, for child care industries benefit from this insurance.
People who are renting out office space or working with large multinational companies may also be required to get this insurance. If the client wants you to add more classes to this insurance, please let your insurance broker know about it. Depending upon your business, different clauses can be added or subtracted like umbrella liability, cross liability, etc.
- Work Insurance Compensation
The work insurance compensation helps companies cover the liability of an employer to pay compensation to the employees when they suffer from work-related injuries or occupational illnesses, according to the WICA. WICA or Work Injury Compensation Act gives workers the power to claim compensation, especially for manual work. The work injury compensation is compulsory for all such workers, including those who earn 1600 dollars or less per month.
Under the act, the worker can claim medical expenses, medical leave wages, or even the lump sum compensation for death, permanent or current incapacity. Such costs can be fatal for a small company, and thus this insurance will be extremely beneficial.
- Commercial Business Package Insurance
The commercial business package insurance is an all-inclusive multiline insurance solution that can be tweaked. It is flexible insurance but provides an affordable option for small businesses. It helps provide a safety net against all disruptive and damaging elements for your business. This package may include coverage against all fire-related incidents, coverage against loss in case of suspension of operation, public liability or general liability cost, or even protection against burglaries and robberies. This insurance scheme may also cover damage to electronic items or other specific appliances that are important to your business.
There are many top commercial lines Insurance companies in Singapore that does not cater to just big businesses. These commercial lines Insurance companies are bringing brilliant packages for smaller firms, even the ones which are home-based. The belief that supporting local small businesses is of utmost importance, and that is why they have created several packages that can be customized to suit the company’s needs. If you are starting, it will be for your benefit to contact them and provide you with the safety that will genuinely benefit.