Many companies are under or overinsured. Speaking with an insurance representative will help clarify what type of insurance and how much is required. A good business insurance representative will present several different scenarios for a business that may need insurance coverage. Performing a risk analysis of assets and liabilities will also help you decide which ones are important enough to be insured and which ones could cost too much money if they are not insured.
Getting the right coverage is always the smartest way to manage all the risks associated with your industry.
Know the level of coverage you need
When you first start a business, it can be very difficult to determine the degree of coverage necessary to run it safely. In Singapore, some covers are required and some are not. The main types of coverage include professional compensation, workers compensation, personal insurance, product liability and liability insurance, protection against theft, fire and other natural disasters, and general property insurance. In addition, you can also apply for income protection insurance, car insurance, and key person insurance depending on the type of business. Most insurance companies will be happy to add a separate clause to the policy if your package does not meet the needs of your business.
Get professional help
Hiring an insurance broker is the right way to go if you are looking for the best coverage you can get. But be sure to choose someone who understands your business risks and has access to multiple insurance companies. Some brokers even conduct risk assessments to design a package that meets all of your needs. The best brokers in the country are members of the National Association of Insurance Brokers (NIBA). They must also be licensed by the Singaporen Securities and Investments Commission (ASIC). Before choosing a broker, you should also inquire about qualifications, services provided, and fees.
See important insurance terms and conditions
To make the right decision, it is important that all business owners have a good understanding of the general terms used in the insurance policy. "Bonus" refers to the amount of money to be paid and "excess" refers to the amount to be paid when a claim is filed. You will also receive an insurance certificate that contains all the information about your policy, including details of the insurance, premium, policy number, and special conditions, if any.
Shopping around
For the best deal, always choose the right one before purchasing commercial insurance. Compare the policies offered by different insurance companies. You can also get great advice and guidance from trade associations or other business owners in the same industry. Whatever coverage you choose, make sure you are not underinsured.
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