What Is Included In Business Property Insurance?

Business property insurance covers the physical assets of your business. This includes the building, equipment, inventory, and furniture. It protects against damages caused by fire, theft, vandalism, or natural disasters. Additionally, some policies may cover the loss of income if your business is forced to shut down temporarily due to a covered event. At eazy Insurance, we help you compare insurance in Singapore to find the best coverage that suits your business’s unique needs.

What Insurance Do I Need For A Shop?

For a shop, you’ll need a combination of insurance coverages to protect against various risks. The essentials include business property insurance to cover physical assets, public liability insurance to protect against claims of injury or damage made by third parties, and employee-related coverages if you have staff, such as workers’ compensation insurance. Depending on your operations, you may also want to consider coverage for stock or business interruption. As an experienced Singapore insurance broker , eazy Insurance can help tailor a plan that meets all your shop’s requirements.

What Is The Meaning Of Occupancy In Fire Insurance?

In fire insurance, “occupancy” refers to how a building or property is being used. The type of occupancy, whether it’s residential, commercial, or industrial, can influence the risk assessment and premium rates of the fire insurance policy. For example, a building used as a factory may have a higher fire risk compared to a residential home. eazy Insurance can assist in finding the right fire insurance based on your property’s occupancy type.

How Much Does Business Insurance Cost In Singapore?

The cost of business insurance in Singapore depends on several factors, including the size and type of business, the level of coverage required, and the insurer. Generally, SME business insurance packages in Singapore can range from a few hundred to several thousand dollars per year.

What Should I Look For When Selecting An SME Business Insurance Provider?

There are several factors to consider when choosing an SME business insurance provider in Singapore: Reputation: Choose an insurer with a good reputation in the industry and a track record of providing quality insurance products and services. Customer Service: Look for an insurer that provides excellent customer service and support. This will help ensure that you receive the assistance you need when you have questions or need to file a claim. Coverage Options: Choose an insurer that offers a variety of coverage options that meet your specific business needs. Claims Handling: Look for an insurer that has a streamlined and efficient claims handling process. This will help ensure that your claims are handled promptly and fairly. Pricing: While pricing shouldn't be the only factor you consider, it is important to choose an insurer that provides competitive pricing for their products and services. While it is possible to select an SME business insurance provider on your own, seeking assistance from an insurance broker in Singapore can be beneficial. An insurance broker can help you navigate the complex world of insurance products and services and provide expert guidance on which policies best suit your business needs. They can also help you compare pricing and coverage options from multiple insurance providers to ensure that you get the best value for your money.

Business Insurance in Singapore

For most businesses, unexpected events with large or sudden losses can have a catastrophic impact on them; sometimes even resulting in financial insolvency. This is why it is important to have Business Insurance, otherwise known as Commercial or Corporate Insurance, to cover the risks that your business is exposed to, no matter how small.

Business Insurance can be for all companies, regardless of the size. You can be a large corporation or a two-person outlet- there will always be suitable coverage for you. The various types of coverage can help to cover the cost of reinstatement of damaged property, loss of income, compensation to a third party for claims made against your business, as well as all legal costs associated.

Different Kinds of Business Insurance

Business insurance includes various types like public liability, professional indemnity, property, worker injury compensation, cyber liability, and Directors' and Officers' insurance, each protecting against specific risks and ensuring business continuity and financial stability.

Type of Insurance	Description	Key Points
Public Liability Insurance	Protects against claims of property damage or personal injury by third parties due to business activities. Covers legal costs and compensation claims if found at fault.	Essential for businesses interacting with the public. Safeguards against unforeseen financial impacts.
Work Injury Compensation Insurance	Mandatory in Singapore for manual workers and non-manual workers earning ≤ $2,600/month. Covers medical expenses, medical leave wages and permanent incapacity or death, for job-related injuries or illnesses.	Protects employees from unexpected medical costs. Helps employers manage financial risks of workplace injuries.
Property Insurance	Provides coverage for physical business assets (buildings, equipment, inventory, etc.) against damage or loss due to various causes like fire, natural disasters, or theft.	Crucial for protecting physical capital and maintaining operational continuity.
Professional Indemnity Insurance	Covers legal costs and expenses for alleged inadequate advice or services causing client losses. Also covers damages or costs awarded.	Important for businesses providing professional services or advice (e.g., consultants, lawyers, accountants).
Directors and Officers Insurance	Protects personal assets of directors or officers sued while performing their roles. Covers legal fees, settlements, and other costs.	Provides peace of mind for those in decision-making positions in a litigious environment.
Cyber Insurance	Essential for most businesses due to increasing cyber threats. Covers liability for data breaches involving sensitive customer information and costs associated with cyber incidents, like data restoration and computer system repairs.	Increasingly important for safeguarding against cyber threats and managing the financial impacts of data breaches.

Do I legally need Business Insurance?

How much does it cost?

What types of SME Insurance packages are there?

Are there other types of insurance a business needs?

Is Business Insurance a Legal Requirement in Singapore?

This varies depending on the type of industry your business is in. While there is no universal list of must-have Business Insurance, here is a list of the most common types of coverage:

The Ministry of Manpower has mandated that all manual employees, regardless of salary level and non-manual employees earning below $2,600 will have to have Work Injury Compensation Insurance.
If you have an office or store in a commercial building, the landlord will usually require you to get Public Liability Insurance as part of your insurance plan.
Professionals such as accountants, lawyers, architects, and doctors require Professional Indemnity Insurance as part of their trade in order to renew their license to practise.
Entering into corporate contracts with other parties sometimes requires you to get Product Liability, Professional Indemnity, and Public Liability Insurance.

The above list is not exhaustive, and each business needs to know the regulatory environment in which they operate and consult with an insurance broker to understand their risk exposure better.

What to Look for in Business Insurance

Protecting your business with the right corporate insurance is crucial. In Singapore, comprehensive coverage is necessary to safeguard against unexpected risks. Here's what to consider when choosing the right policy.

Start by assessing the specific coverage your business needs, from property and equipment to liability and employee-related risks. Look for a policy that's flexible and can adapt as your business grows.

It's important to work with reputable business insurers who understand the local market and offer solutions tailored to your industry. Whether you're covering your office, vehicles, or intellectual property, the right insurer will provide a policy that fits your business model.

Commercial insurance protects against risks like asset damage, business interruption, and third-party liability. Don't forget to include key protections like cyber insurance, especially as digital risks grow.

When insuring a company, choose a trusted partner who can offer personalised advice and ensure your coverage aligns with your long-term goals, giving you peace of mind that your business is well-protected.

Common Factors That Affect the Cost of Business Insurance

The cost of the Business Insurance is usually dependent on a few common factors:

Nature of Business:

Is the nature of your business high or low risk? Your property and liability risk could be higher and thus require a higher level of coverage.

Revenue Turnover:

Higher revenue equals more products sold and more customers, and thus more exposure to risk.

Number of Employees:

The more employees you have, the more workplace risk.

Risk Location:

Is the property in an industrial or commercial area, where injuries are more likely?

History of Claims:

The number of past claims your business has made will invariably lead to higher premiums.

Industry-Specific Insurance Needs

Industry-specific insurance needs vary across sectors. Generally, retail businesses need coverage for inventory and theft, F&B requires liability for food safety, and manufacturing demands protection for equipment, workers, and production risks.

Office

F&B

Retail

Education

Health and Beauty

Renovation Contractor

These usually cover a minimum of Property All Risk, Public Liability, and Work Injury Compensation

Choosing the right business insurance requires an understanding of the risks specific to each industry. Here are some examples of industry-specific insurance needs.

Industry	Risks	Essential Insurance Types
Retail Sector	Property or inventory damage due to fire, natural disasters, etc. Theft Liability Issues	Property insurance for physical store protection Cyber insurance to protect against data breaches and cyber-attacks, especially for businesses with a strong online presence Also consider: Insurance for goods in transit, crucial for businesses with significant merchandise shipping and receiving activities.
Food and Beverage	Food safety and the risk of foodborne illness Employee safety Property risks	Liability insurance to cover potential claims from foodborne illnesses Property insurance for physical location, kitchen equipment, and dining areas Also consider: Business interruption insurance to address loss of income during sudden closures due to damage within the premises.
Manufacturing Industry	Equipment malfunctions and breakdowns Employee safety Product liability issues	Equipment breakdown insurance for machinery repair or replacement costs Work injury compensation insurance for job-related injuries or illnesses Goods-in-transit insurance for transportation risks of raw materials and finished products Also consider: Product liability insurance to protect against claims from defects or malfunctions in manufactured products.

Guide to Insuring Your Business

When insuring a company, the first step is assessing its unique risks and needs. Every business faces specific risks that can impact its operations, finances, or reputation, so understanding these is key to choosing the right coverage.

Begin by identifying potential threats. For example, a tuition centre should consider public liability insurance to protect against accidents or injuries during activities. A financial advisory firm, however, needs professional indemnity insurance to cover claims of negligence or errors in advice.

With the rise of digital tools, cyber insurance has become essential for protecting against data breaches and cyber-attacks that could disrupt business.

Finally, consider the size of your business. Smaller companies may not require extensive coverage like large corporations but should still focus on essential types like property or employee-related insurance. Larger companies will need more comprehensive policies to protect assets, employees, and global operations.

What other insurance does a business need?

Some of the most common insurance coverages that a business requires are:

Public Liability

Public Liability Insurance protects your business when faced with claims of property damage and injury caused to a third party in connection with your business activity.

Work Injury Compensation

Work Injury Compensation Insurance covers compensation claims from an employee’s work-related injury or illness.

Property

Property Insurance is designed to cover the physical properties your business owns as well as costs related to the business property.

Professional Indemnity

Professional Indemnity Insurance provides coverage for work liabilities such as legal fees and compensation wrongful acts made against you.

Directors and Officers

Directors and Officers Insurance covers claims resulting from decisions and actions taken by company managers as part of their job duties.

Frequently Asked Questions

About Business Insurance In Singapore

Business property insurance covers the physical assets of your business. This includes the building, equipment, inventory, and furniture. It protects against damages caused by fire, theft, vandalism, or natural disasters. Additionally, some policies may cover the loss of income if your business is forced to shut down temporarily due to a covered event. At eazy Insurance, we help you compare insurance in Singapore to find the best coverage that suits your business’s unique needs.
For a shop, you’ll need a combination of insurance coverages to protect against various risks. The essentials include business property insurance to cover physical assets, public liability insurance to protect against claims of injury or damage made by third parties, and employee-related coverages if you have staff, such as workers’ compensation insurance. Depending on your operations, you may also want to consider coverage for stock or business interruption. As an experienced Singapore insurance broker, eazy Insurance can help tailor a plan that meets all your shop’s requirements.
In fire insurance, “occupancy” refers to how a building or property is being used. The type of occupancy, whether it’s residential, commercial, or industrial, can influence the risk assessment and premium rates of the fire insurance policy. For example, a building used as a factory may have a higher fire risk compared to a residential home. eazy Insurance can assist in finding the right fire insurance based on your property’s occupancy type.
The cost of business insurance in Singapore depends on several factors, including the size and type of business, the level of coverage required, and the insurer. Generally, SME business insurance packages in Singapore can range from a few hundred to several thousand dollars per year.
There are several factors to consider when choosing an SME business insurance provider in Singapore:
- Reputation: Choose an insurer with a good reputation in the industry and a track record of providing quality insurance products and services.
- Customer Service: Look for an insurer that provides excellent customer service and support. This will help ensure that you receive the assistance you need when you have questions or need to file a claim.
- Coverage Options: Choose an insurer that offers a variety of coverage options that meet your specific business needs.
- Claims Handling: Look for an insurer that has a streamlined and efficient claims handling process. This will help ensure that your claims are handled promptly and fairly.
- Pricing: While pricing shouldn't be the only factor you consider, it is important to choose an insurer that provides competitive pricing for their products and services.
While it is possible to select an SME business insurance provider on your own, seeking assistance from an insurance broker in Singapore can be beneficial. An insurance broker can help you navigate the complex world of insurance products and services and provide expert guidance on which policies best suit your business needs. They can also help you compare pricing and coverage options from multiple insurance providers to ensure that you get the best value for your money.