In Singapore, compulsory business insurance packages are available to companies registered under Chapter 183 of the Companies Act. These packages are geared towards ensuring that enterprises can effectively respond to various types of risks and still maintain their day-to-day operations. To qualify for these schemes, businesses must fulfill certain criteria so as to guarantee whether they will be able to be covered or not.
The different compulsory business insurance packages are purchased from the Insurance Association of Singapore through the Industrial Accident Compensation Act (IACA). The IACA states clearly what these products are meant to cover. For instance, Comprehensive General Business Liability Insurance is meant to cover various risks that could arise from the business as well as offer protection for shareholders. Other compulsory business insurance packages focus on marine insurance, workplace injury compensation, and even personal accident coverage. The idea of these schemes is to make sure that businesses are protected against fires, thefts, employee lawsuits, or any kind of unexpected incidents that may occur.
This is good news for small to medium enterprises (SMEs) that may not have comprehensive insurance coverage. But what happens if SMEs are only willing to purchase one package from the IACA? This means that they would be able to cover only specific sections of their business or even a certain aspect of their own operations. In other words, they wouldn’t be able to cover the full extent of their operations. This is especially true if a business has several small departments and sections or affiliated companies that may require special insurance coverage.
However, with compulsory business insurance packages, SMEs are given that extra leeway to decide whether they want all these schemes or just some of them. The point is that SMEs do not have to settle for just one or two packages. They may opt to get a few insurance products and take advantage of several more advantages and benefits of different schemes. For example, businesses can choose to get personal accident coverage to be protected should any kind of accident occur in the workplace. Or they may also opt to get Comprehensive General Business Liability Insurance products to better protect themselves from potential lawsuits.
A few things have to be considered, however. First of all, businesses need to make sure that their operations and pipeline are secured against accidents or other risks incurred during the course of day-to-day operations. These compulsory business insurance packages can help with such coverage, but it’s important to remember that there is a limit on how much protection these schemes really have. So while businesses may be relatively safe against some risks, they still need to make sure their operations are adequately covered, so the business remains in line with all regulatory and industry standards in Singapore.
In order to keep your business afloat, it’s important that you have the correct compulsory insurance package. With our help and expertise, we can create a plan for your company that will provide peace of mind in these uncertain times. Contact us today to get started on designing an insurance package that best suits your needs.
