Starting and running a business successfully in Singapore can be quite challenging. As a business owner, you have to prepare for the dark future and strategize on how you will grow your business.
Some of the easiest and recommended ways of making running a business accessible and successful are obtaining the government grants for SMEs like EDG and the right business insurance. In this article, we will focus on the latter. An ideal business insurance policy will adequately protect your business and employees against potential risks that they can encounter during business operations.
If you have just started a small business in Singapore and are considering getting the right business insurance, this article will discuss the most important insurance policies that you need in Singapore.
1. Directors and Officers Insurance (D & O Insurance)
As the name suggests, D & O insurance is a policy that protects directors and officers against claims and investigations made against them while acting as a key decision-maker in business operations.
In most cases, the claims will be about discrimination, unjustified dismissal, misuse of business funds, theft of intellectual property, negligence of duties, and managing the business without proper regard for the rights of others.
The policy also covers HR and any other person put in charge of making a major decision on behalf of the business.
2. Professional Indemnity Insurance (PI Insurance)
This is another essential business insurance policy that business owners in Singapore, particularly SMEs that offer professional services, including giving advice, need to get.
Professional indemnity policy can protect you if a client sues you following a financial loss that resulted due to your mistake. Businesses offering consultation services can also benefit significantly because the policy also caters to costs of legal claims associated with negligence in duty.
Because this policy can be tricky to understand, it is advisable that you talk to an insurance specialist before committing your hard-earned money.
3. Cyber Liability and Data Protection Insurance
In today’s tech-driven world, cybercrime and cyberbullying have become commonplace in today’s media, raising concerns for most companies. That’s why this policy is non-negotiable for all Singapore businesses that operate online. Considering that many small businesses also utilize tech devices, the policy is very important for your business.
Essentially, cyber risk and data protection policy cover you and your business in case data belonging to customers, clients, or the business itself leaks, gets lost, or gets corrupted. In case of an event, this policy caters to costs of recovering the lost data, costs for claims that may arise from extreme data breaches, and any financial losses incurred when investigating the breach.
The business insurance policies listed above are the most essential for small businesses in Singapore. However, this should not limit you from obtaining a comprehensive insurance policy covering general liability, property, marine cargo (if your business operates globally), worker’s compensation, professional liability instance, and BOP.
Depending on your industry and business size, you may need to talk to an experienced consultant and determine what policies you need. Working with a good insurance company will make the process of running your business smoother.