Some insurance companies in Singapore opt to offer small, and medium-sized businesses packaged insurance. There are many reasons for this, including lower premium offers for packages, which ultimately cost less than individual policies. This is one-way insurance companies lure small and medium-size businesses that do not have much money to spare for insurance. Most commercial insurance packages attract low premiums, and so are a more attractive option compared to individual policies. Insurance companies can afford to offer such packages because SMEs don’t have as much liability as huge corporations. Often, insurers tailor the commercial packages depending on the business.
Rob Starr, in his article on smallbiztrends.com, discusses some of the insurance policies critical in small businesses. These are some of the coverages that insurers include in commercial insurance packages.
Essential Business Insurance Policies Included in Packages
“Getting the right kind of business insurance is important. It can help you to safeguard against a drop in sales, natural disasters and even unforeseen crises. Small Business Trends contacted Keith Moore of CyberPolicy to find out the types of business insurance your operation needs. Having the right type of insurance coverage is just as important as the goods and services you sell. He told us what’s important to get. Choosing the right type of insurance requires knowing exactly what you need.” Read more here
When customizing commercial insurance packages for small and medium-sized businesses, insurance companies consider the most critical areas that require insurance. After all, these businesses carry minimal risk. However, the level of risk is irrelevant because an uninsured small business can be destroyed without a commercial package that at least covers general liability and business property.
In the following article, Mariel Loveland analyzes the various risks a small establishment faces as soon as it opens its doors, and the essential insurance policies to cushion such businesses should disaster strike.
What Policies Should be Included in a Comprehensive Insurance Cover for Small Businesses?
“The second a small business opens, there’s the risk. Business owners have a certain responsibility to their consumers, employees and the world around them that puts them at risk every single day if something goes wrong, and let’s be honest: Things do go wrong. That’s just life, but that’s also why we have business insurance.
A comprehensive business-insurance plan can protect you against the liabilities that lead to financial ruin, but there are so many different types of insurance that it’s often hard to choose what’s necessary.” Read more here
Choosing policies to include in a comprehensive commercial insurance package can be overwhelming, especially for business owners doing this for the first time. How do you decide which policies are vital, and which ones are not, at least when you first set up your business? Some insurance companies have a Business Owner’s Policy (BOP) that covers issues like business interruption insurance, commercial auto cover, liability insurance, workers’ compensation, and property insurance. Having every aspect of insurance under one cover makes it easier for business owners to understand the insurance package they have in place for their business.
The following article by Patrick Chen looks at the core and additional policies small businesses need to protect against business risks.
The Core Aspects of a Small Business’ Insurance Cover
“Business Insurance helps protect your business from financial losses caused by unexpected events. Since every business is unique, each business will have different insurance needs. In this guide, we cover the most common types of business insurance.
Most business insurance is optional, so purchasing insurance is a business decision that can help reduce the risk of financial ruin in your business when an accident or disaster occurs. Some coverages, like workers’ compensation, are mandatory coverages in most states for businesses with employees.” Read more here
Although businesses sell different products and provide different services, the risks they face are similar. This is why insurance companies can afford to offer the same commercial package to small businesses in different sectors of the economy. However, the policies in the package can be changed to accommodate the specific aspects of each business. For example, should there be an earthquake or fire, the companies in a given area are likely to suffer property damage, bodily injuries, and loss of income. Small businesses that can afford to take additional cover do so to reduce the possibility of incurring further unnecessary losses.
If you are a small business owner in Singapore and is looking for business insurance, find out more information here.
Fortunately, as businesses grow and the revenue increases, business owners can revisit the policies they took out to protect the business. Companies that grew to become big corporations no longer have the same commercial insurance packages they had when they were small because now the risks are larger. So, business owners need to take the time to assess their insurance policies to determine their viability over time.