FABIEN

Small Business Series – In the spotlight with Fabien Goutoulli

As part of our Small Business Series, we wanted you to be fully equipped with all the information you need to run your business. Fabien, Head of Property and Casualty lines and has a wealth of experience making sure businesses are protected from potential risk! Here he answers some questions which can help anyone starting or running a business.

What trends can we expect to see for 2020?

1. Cyber Risk is a big threat for this year, I believe Cyber risk is equally concerning for SME businesses, alongside other major traditional exposure, for example, Liability. Therefore, it is super important for companies to ensure they have Cyber coverage in place to minimise risk!
2. Liability coverage, especially Professional Indemnity will remain the most important insurance requirement for many clients as they grow and develop within the market.
3. The new WICA amendment could change the rate and see higher premium for Workers Injury Compensation so SMEs need to be aware of this – https://www.mom.gov.sg/workplace-safety-and-health/work-injury-compensation/changes-to-wica-in-2020

How big does your company need to be to have business insurance?

Any business, any size should have insurance. However, there are some prerequisites to purchasing insurance depending on the type of business you are running and risk exposure for your company. Insurance like office package, public liability or professional liability are the first insurance requirements you may need for contract agreements. You need good insurance products which support your plans to grow and develop.

Is there specific insurance policies designed for Small Businesses?

The insurance market for small business and SMEs will provide some pre-underwritten package products with wide coverage and minimum level of indemnity. These polices are designed for any new SME company or early stage planning which is a good starting point for the development of your company.
Be aware that these policies could be inefficient for your business as you grow and reach a critical size, develop new areas of your business, expand internationally or win new clients to name a few examples!

What steps should I take to cover my growing business?

I can summarise based on 2 aggravating factors:
1. If you plan to grow your business domestically you should take account of the organic growth and exposure when you have international customers e.g. US or Australia
2. If you have plans to grow your business internationally or overseas you will face new risks – meaning exposure can be overlooked or underestimated so make sure you understand the requirements you may need

Insurance products are not always adapted for this type of development, so SMEs need to consider:
– Have regular discussions with your Insurance Broker, in order to ensure the coverage fits in accordance to your business footprint
– Develop a risk management roadmap
– Anticipate the level of insurance required as the business scales

Why is Cyber Risk Insurance so important?

SMEs may have low level security of their IT system and therefore could be at risk! The SME industry is a popular target for hacktivists, ransomware is a specific technical attack where they steal data and make IT systems nonoperational.

Generally, SMEs may not have in house resources to respond to cyber attacks or a data breach. Cyber policies will help protect SME businesses from risk and regulations.

Thank you 😊

If you are looking for any help, guidance or insurance cover, please contact Fabien on fabien@expatinsurance.com.sg or +65 6439 8026