What is Property Insurance?
Property Insurance is designed to cover most physical properties your business owns. All costs related to the business property can be covered. The cost of rebuilding after a building has been destroyed, or the cost of replacing property that has been completely lost. Any revenue that is lost, and that is insured by this type of insurance, can often be recouped. This insurance is designed specifically to help a business continue operating after property loss or damage.
Does my business need Property Insurance?
If you own a property and operate a business out of it, chances are that you will incur both revenue and property damage loss. A property that is damaged and rendered unsuitable for continuing operations can be very catastrophic for the business.
You need Property Insurance if:
- You own or operate a business
- Your business has any physical assets
- Your physical property is essential to your company’s revenue
- Your physical assets do not draw revenue but have other important uses
What does Property Insurance cover?
Does cover:
- Building
- Equipment
- Revenue loss
- Rebuilding cost
- Damage due to fire, flood, theft, burst pipes
- Business interruption due to property damage
Does not cover:
- Wear and tear
- Unoccupied properties
- Motor vehicles
- Personal assets
- Intentional damage
How much does Property Insurance cost?
The cost of Property Insurance varies and depends on several factors, including:
- The age of the property and security measures in place.
- The type of business the property is used for.
- The level of cover you need.
- The number of properties you want to insure.
- Your claims history. Have you claimed your commercial Property Insurance before?
Frequently Asked Questions
About Commercial Property Insurance Singapore
- Commercial property insurance isn’t mandatory in Singapore. Still, the government obliges any business owner operating in an owned or rented physical/brick-and-mortar location to buy this policy. This is so they can claim against any third-party damage to your property instead of paying for out-of-pocket damages.
- You or the building owner will shoulder the costs of getting commercial property insurance. This will usually be stated in your lease agreement (for rented commercial property).
- It depends. If you run your online business in a property you own or rent, commercial property insurance ensures you don’t pay for any out-of-pocket costs resulting from losses or damage. But if you’re mainly running an eCommerce business, you can consider buying other business insurance types like general and product liability insurance instead.
- All Risks Insurance covers accidental loss or damage to your real and personal property. This includes burglary even without forcible or violent entry.
- Yes, All Risks insurance in Singapore can cover damage caused by natural disasters such as floods, earthquakes, and typhoons, depending on the policy's terms and conditions.
- No, All Risks insurance policies in Singapore cannot include coverage for damage caused by cyber attacks, such as data breaches or cyber extortion.
- Fire insurance covers you against loss of or damage to your insured building due to fire or extraneous perils, such as lightning, flood, riot, strike, etc
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