3 Risks Of Not Buying Small Business Insurance

3 Risks Of Not Buying Small Business Insurance

Whether you own a multinational corporation or a small-medium enterprise, business insurance is necessarily a safety measure that will weather your organisation in times of turmoil and uncertainty. If you already buy insurance for your family, it makes prudent sense sense that a venture you put effort, capital and resources into requires one as well. 

We understand the limitations that come with a small business – financial decisions take a bigger play on prioritisation, need and value. Over the years as an insurance broker, we’ve observed SMEs erring on the side of caution when it comes to making big ticket financial decisions – and an insurance policy is one of them. However, financially protecting your company is a cost-effective and logically coherent step to take in the long run. 

Even if business-affiliated risks of security compromise, untimely deaths or financial losses seem unlikely, it takes just one occurrence to derail progress and investments made in a business for the long run. And, this is even more so the case for small businesses! 

What types of business insurance would you need? 

Common Types of Business Insurance 

  • Professional Indemnity Insurance
  • Work Injury Compensation
  • Cyber Liability Insurance (link to Cyber Risks Blog) 
  • Employee Benefits Medical Insurance
  • Directors’ & Officers’ Insurance 

With years of experience, Expat Insurance Singapore is the leading broker for both corporate and individual financial planning and insurance decisions. Read on to understand the risks of not purchasing adequate SME insurance in Singapore. 

1. Following Local Laws | SME Insurance Requirements

Laws pertaining SME insurance requirements vary country to country. If we are looking at local laws here in Singapore, there are some mandatory requirements. According to the Ministry of Manpower’s Work Injury Compensation Act, all employers are required to contribute to their employees’ Medishield accounts. Likewise, even though S Pass and Work Permit holders aren’t eligible for MediShield, employers still need to purchase medical insurance for them. 

Liaising with an insurance broker can alleviate your concerns and ensure that you are in compliance with the local laws that pertain to the relevant SME insurance requirements

2. Failing To Protect Your Employees

Beyond compliance with regulatory local laws, employers are encouraged to purchase basic medical insurance for their employees

Today, job design and specifications alone are insufficient to attract and retain employees. Company culture, compensation, benefits and other perks are just as important as deciding factors to work for an employer. One of these things include expat and local medical insurance in Singapore – health benefits are a big plus for attractive compensation packages

Building a sense of security, culture and community is achieved through careful and meticulous planning of engagement programmes, compensation and health insurance is one example. 

3.  Failing To Protect Your Business 

Most importantly perhaps, a lack of adequate insurance policies can be detrimental to your business in the long term. 

Though unlikely, encountering unfortunate circumstances or events can turn the tables on the security and financial health of your company. Business insurance helps ensure that years of resources, investment and manpower put into a business isn’t lost. 

This can be easily avoided by meeting SME insurance requirements (for a start) and then building on it when you have the capacity to. Business insurance pays off in the long run. 

Discuss SME Insurance Requirements With Us Today  

Uncertain about the SME insurance requirements you will need? With years of experience, our team of insurance brokers will be able to align your needs with the necessary and bonus business insurance policies for a stable foundation. For instance, the pandemic itself has taught us that unprecedented circumstances can crop up at any time. 

Find out how small businesses can weather the Covid-19 pandemic here

From the basics to advanced policies, we can tailor make plans that suit your growing business needs – at a pace you are financially comfortable with! 

Get in touch with our team to discuss your SME business insurance needs.