Business insurance is more than a risk management tool for startups and SMEs

The cost of business insurance depends on factors such as benefits, scope of coverage, sum insured, company size and operation. Costs can range from a few hundred dollars to several thousand dollars. It’s essential to remember that cost is just one of the factors to take into account when purchasing business insurance. For startups and SMEs in Singapore, evaluating the risks associated to your operations and understanding how business insurance provides necessary protection against unforeseen events that could result in financial setback is pivotal.

Business insurance packages are a type of business insurance solution that bundles multiple forms of coverage, such as public liability and property all-risk, under a single policy. This comprehensive solution provides cost-effective protection against unexpected events, and is designed for a broad range of businesses like F&B, office, retail, beauty, and healthcare sector.  

The need for business insurance in Singapore varies based on the nature of your industry. There are two common instances where business insurance is mandatory. First, under the Worker Injury Compensation Act (WICA), employers are mandated to procure and maintain Work Injury Compensation Insurance (WIC Insurance) for all employees doing manual work and employees earning less than S$2,600 a month. Second, if you are a tenant of a commercial building, whether operating a retail store or renting office space, your landlord may require you to procure a Public Liability insurance (PL Insurance). In both instances mentioned, you are required to secure business insurance such as WIC insurance and PL Insurance.

Purchasing additional coverage beyond the mandated insurance policies can be beneficial to your business. Consider a host of issues that may arise from your daily operation – from the possibility of temporary business cessation due to unexpected events, which can have ramifications on your operating income, cash flow and expenses, as well as the loss of money due to accidents or dishonest employees. Depending on the financial impact of these unexpected events, they can have existential threat to your business in the worst-case scenario. It can be prudent and necessary to have additional coverage to serve as a financial guardrail against a wide range of risks associated with your business.

This is where the coverages from our business packages – Liberty’s Care Series for Business – come in handy, offering a bundle of coverage that includes both additional protections and/ or mandatory coverage, all in one easy-to-manage insurance policy.