Why SMEs Should Support Themselves with Commercial General Insurance in Singapore

Why SMEs Should Support Themselves with Commercial General Insurance in Singapore
The Siliconreview
06 July, 2022

A survey conducted in 2019 revealed that 69 percent of small and medium-sized enterprises (SMEs) in Singapore encountered at least one business issue. When SMEs are trying to use more technology in their business, they lack basic protection against any risk of loss due to cybersecurity breaches, equipment breakdown, or business interruption.

SMEs should ensure that they are adequately covered by insurance attuned to their exact business needs. With the right commercial general insurance, you can take care of your business operations, assets, and people. What you have to do is to understand the risks your small business faces and get the insurance plans accordingly. Before that, it is better if you know what business insurance covers.

With commercial general insurance, you can:

1. Protect your assets

It’s highly recommended that your business should consider all-risk insurance for protection from any loss or damage to the assets or business interruption due to machinery breakdown, fire, or burglary. Here are some insurance plans designed to cover them.

  • All Risks Insurance

Your assets, equipment, and machinery should be adequately insured, for they are subjected to accidental damage or loss resulting in replacement or costly repairs. With All Risks Insurance, you can protect your equipment and machines from any unforeseen loss or damage caused by fire, burglary, or any other misfortune or accident.

  • Burglary Insurance

With this commercial general insurance plan, you can protect your buildings and content from any damage or loss caused by forcible or attempted theft and violent break-in and exit from the business premises.

  • Fire Insurance

You can protect your building and its content from damage caused by lightning strikes, explosions, flooding, impact damage, acts of God, and malicious damage like riots and strikes, vandalism, and any other events.

  • Money Insurance

It offers coverage to any loss of money either on the business premise or during transit due to any event or cause.

  • Trade Cargo Insurance

With marine or trade cargo insurance, you can protect your goods in the warehouse and in transit by sea, land, or air.

2. Protect your business operations

SMEs can protect their business from any business interruption, public liability, or any other cause with multiple insurance solutions. They include:

  • Business interruption insurance 

Interruption to business operations after a flood or fire will cause losses. With this business insurance plan, you can protect your business from those losses.

  • Public Liability Insurance

With this plan, you can protect your business from any legal liability to a third party because of any accidental bodily injury or damage to property during the business operation.

  • Business loan protection

This insurance coverage is meant to protect the guarantor(s) of your business loan from any loss due to a personal accident. In the event of any permanent disability or death, the insurance can help settle the outstanding loan.

  • Fidelity Guarantee Insurance

Any dishonesty or fraud committed by employees can be costly to the business. You can cover it with fidelity guarantee insurance.

3. Protect your people

Your business cannot afford to lose employees due to accidental injury, death, or permanent disability. You can take care of your employees with:

  • Group Personal Insurance

With this insurance plan, employees can have a lump sum amount in case of any accidental death, total and permanent disability, or dismemberment due to any cause.

  • Healthcare Insurance

Employees can be protected from any unexpected costs arising out of surgery and hospitalization with this insurance plan.

  • Work Injury Compensation

SMEs are required to get work injury compensation for their employees, which is a statutory requirement. With this insurance, you can cover:

  • Medical leave wages
  • Medical expenses incurred due to workplace injury
  • The lump-sum compensation for permanent incapacity or death 

In short, commercial general insurance helps SMEs with risk management through adequate insurance solutions to have much-needed financial support, mitigate threats, and become sustainable.