The business package insurance will include, under one single contract, several types of insurance coverages such as property damage, business interruption (additional cost of working), money, personal accident, glass breakage, neon sign, public liability, fidelity guarantee, employees’ compensation, goods in transit, and machinery breakdown. Such an insurance package offers several advantages. As mentioned above, it offers a broad variety of basic coverages needed for small and medium-sized businesses in Singapore. Also, as all these coverages are with the same insurer, this solution is logically more economical than having different insurance policies with different insurers. Finally, because we are talking about one contract, this is very easy to handle and renew.
However, this insurance policy is made up of several coverages that are different in nature and scope, each having some specific exclusions or extensions, with specific limits and deductibles. All this makes it very challenging to read and understand.
Please find below, some simple advice to ensure that the business package insurance answers your business needs:
- Understand your needs in term of property and liability risks. For instance, if you think your company is sensitive to in-house crime because of the cash you may have or because of the goods you have stored, it may be worth choosing a business package that will offer you an extension to cover fidelity of employees.
- Make sure the sums insured for the building (in case you are the owner), the contents and the stocks are adequately declared to your insurer. In case of loss, this is the first thing the insurance expert will check. In case your company is underinsured, the insurance company will apply some proportional rules and your indemnity will be diminished accordingly.
- Make sure your public liability cover follows your needs. If you or your employees are travelling within a certain territory, it’s important to make sure that the territory covered by the insurance policy is in compliance with your activity and not limited to your premises.
- Inform your insurer about any material changes in your risk nature. For instance, if you have renovated your office or your shop, don’t forget to declare it to your insurance company.
- Understand what you are covered for. Your insurance intermediary will help you to understand your needs. He will walk you through the contract and draw your attention to certain caveats or exclusions.