Small business owners often are focused on growing their companies and meeting their consumer needs in the market. Shocking as it may be, insurance is not something they think about immediately.
According to a survey done by QBE, nearly 10% of Singapore’s small medium enterprises don’t have insurance policies put in place to protect themselves in the event of a financial downturn. Even if they did purchase insurance, only mandated plans were secured. While 64% believed insurance was valuable, a whopping 51% didn’t think it was a priority.
For many fledgling businesses, events such as the loss of an employee or theft of intellectual property can be costly mistakes. Small businesses could be concerned with short-term considerations such as employee retainment, product development and profit retention. However, what many may fail to realise is the long-term benefit and resolution that insurance planning can do for SMEs.
As leading insurance brokers, Expat Insurance is not only experienced in offering insurance policies across individual and business sectors but also providing tailor-made solutions that can be especially useful for SMEs. SMEs who desire a good footing insurance-wise but are also cost-conscious could consider plans specifically tailored to their needs.
What are some misconceptions surrounding SME insurance in Singapore?
1. Business insurance doesn’t need to be expensive.
Perhaps the biggest misconception around SME insurance is that it is expensive. Many SMEs, especially ones that are starting out, are cost- and feature-conscious. Although they may think having business insurance is absolutely vital, they often fall under the group that doesn’t consider it a priority.
However, SMEs don’t have to indulge in highly priced plans. Small businesses need to invest a little more time and effort into the initial research phase – this can go a long way in helping them to figure out the insurance plans that they need and can justifiably set some finances aside for.
- Figure out the type of SME insurance you need.
- Compare and discuss insurance plans offered by different insurers.
- Get your mandatory SME insurance requirements settled.
- Work out a comprehensive plan that is packaged for your needs.
Liaising with a renowned professional can ease the navigation into the insurance market. Some of the more common SME insurance plans you can begin with are:
Besides the above, cyber insurance is steadily becoming a crucial component for businesses – both large and small – as the global economic environment goes digital. Buying SME insurance can be instrumental to protecting the effort and money invested into a business venture.
What are the risks of not getting business insurance? Learn more here.
2. SMEs need to reduce cost in other ways.
While it may be true that SMEs need to be cost-conscious – especially at the beginning of their ventures – insurance is not one area they should skimp on. There are a myriad of other areas in which SMEs can choose to be financially savvy over.
Given that SMEs are generally smaller in size, they can choose to work in coworking spaces or have teams (that are capable of doing so) function remotely. Similarly, SMEs could also outsource roles wherever possible so as to trim down on staff costs. Finally, in a digital era like today, failing to invest in technological tools would be a lost opportunity for smaller firms.
This way, SMEs can then channel extra funds into their insurance requirements. When SMEs work with an insurance broker over a longer term, it is also likelier that they will gain access to premiums, policies and discounts they may need on their insurance plans as they scale their business.
3. Employee benefits are an integral part of any business policy.
Aside from the mandatory SME insurance requirements, employee benefits are equally important for businesses today.
Businesses – of all sizes – need to invest in comprehensive and attractive employee benefits and insurance packages. Given the time, effort and resources that employees put into their work daily, companies should compensate them accordingly. Likewise, on the global market, employees today are given a wide range of choices and benefits from company to company. Business owners who don’t pay heed to employee benefits insurance could
potentially be losing out on talent.
SMEs tend to be careful with their employee count – with a smaller headcount than bigger firms, they’d hire highly specialised employees for specific functions that aren’t viable for outsourcing. It then becomes even more pertinent for SMEs to protect their employees and invest in them as a resource.
What do employers need to know about employee insurance? Find out more.
Go With Expat Insurance Singapore For SME Insurance Packages
Are you a SME business owner? Pick expertise and experience for your insurance plans. With a diverse portfolio, our team will be able to specially recommend tailor-made solutions that both benefit your budget and needs.