When you set up a business in any country, it is important to know about all the aspects of running a business in that particular country. Singapore is one of the places that is considered the easiest and most beneficial way to run any business or set up a new one.
There are many things that a businessman needs to care about when running a business. One of these things is corporate insurance. Corporate insurance is nothing but protection for an organization or a business against any potential operational risks. The risks involve things like theft, accidents, employee health, financial losses, and more such things.
So, during the early stages of a Singapore company setup, when you run a business in Singapore, it is important that you lookout for the best corporate insurance in Singapore that your business requires. As corporate insurance helps protect your business against potential risks, you can run your business without worrying about these risks when you have good corporate insurance.
This article will talk about five types of corporate insurance in Singapore that you must be aware of for running a business seamlessly in Singapore. Let’s begin.
Commercial General Liability
Commercial general liability covers damage to any property or personnel due to any business operation, the service you provide, or even your employees. In addition, it covers all the non-professional negligent acts.
The following are examples of some situation where your company shall be liable to pay to compensate for any damage:
- If a lawsuit is filed against your business for alleging advertisements that involve misleading information.
- When a customer or client is injured in your business facility due to improper construction.
- If you are involved in a business involving water from a customer’s home, an employee accidentally leaves the water running, causing damage to the customer’s house.
- There is a fire due to any of your operations, and there is damage to a third party.
In such cases, corporate insurance pays for the damages if your business is liable within the terms and conditions of the policy.
Work Insurance Compensation
Work insurance compensation is the one that is for employees working for your company. If any of your employees suffer from a work-related injury, sickness, or damage, then your company is liable to compensate for this sort of damage. Work insurance is mandatory for all the employees involved in manual work with a salary below $2,600/month.
The insurance covers expenses like medical care costs, lost wages, and funeral costs. However, the insurance company does not pay if the damage or injury is caused outside of work or some employees intentionally hurt themselves.
Professional Indemnity Insurance
Professional Indemnity insurance covers the legal aspects of any client who files a lawsuit against your company for their loss or damage. In addition, it covers your mistakes that are made while rendering professional services.
There are certain cases when your business deals with huge clients, and they sue your business for a very petty reason or no reason at all. Professional indemnity insurance will help you cover legal defense costs, PR costs, and damage costs in such cases. This insurance is important for those who have big clients and are involved in overseas contracts.
Commercial Business Insurance
Commercial business insurance involves one or more coverages. It is insurance that can be designed especially to meet the requirements of your company. The insurance protects businesses, including its employees and property.
This type of insurance is often preferred over others, proving to be a more affordable option. The insurance coverage includes theft, workers’ compensation, cyber insurance, business interruption, equipment breakdown, and more such things. You can design your own insurance depending on what your business needs.
Management liability is designed to protect a corporation, its directors, and its officers. This insurance covers all the business entities against claims by competitors, investors, regulators, and shareholders. It also covers fiduciary liability, D&O liability, crime insurance, employment practices liability, and kidnap and ransom insurance.
This kind of insurance is best suited for businesses that have potential investors or regulators. The insurance covers the PR costs, damage costs, and legal defense costs for the people who come under the insurance.
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