SME Insurance Singapore

There are many insurance policies out there for small business, some are a legal requirement and others provide vital peace of mind and can prevent a business from failing following an emergency.

Legal compliance aside, the area of insurance that offers the greatest lifeline to small business is credit insurance. The global downturn saw an unprecedented number of businesses fail. For many this was collateral damage, taken down by the failings of another business whose own insolvency led to bad debt and failure to honour invoices. Businesses of all sizes from large corporates to small SMEs, regardless of whether they trade internationally or domestically, can benefit from credit insurance. However, it can be argued that credit insurance is more important for small businesses because they can be more vulnerable to the bankruptcy of customers.

 

Small business insurance

Small business insurance includes cover for:

  • Accounts receivable
  • Liability
  • Commercial vehicles
  • Property damage or theft
  • Employee protection
  • Business interruption

 

Accounts receivable

Your accounts receivable includes the value of products or services you have sold but have not yet received payment for. You can insure this and protect your cash flow with trade credit insurance. Many businesses also use credit insurance to help them secure finance, attract new customers with favourable credit terms and minimise risk when entering new markets. At Atradius Singapore we provide tailored credit insurance solutions for businesses of all sizes from SMEs to global multinationals. We support businesses that trade domestically and internationally, as well as organisations that need to insure long-term projects with non-cancellable limits.

 

Learn more about Atradius Singapore credit insurance.

 

Liability

Liability insurance can refer to public liability, management liability or product liability. This insurance protects your business from being sued if your organisation causes harm to another person or business. Professional indemnity covers disputes such as breach of contract or professional malpractice. In Singapore, it is compulsory for some businesses to take out liability or professional indemnity insurance.

 

Commercial vehicles

As with private car ownership, commercial vehicle insurance is compulsory. Private car insurance is not acceptable for business vehicles that have to be covered by a specialist policy. This insurance usually covers loss or damage to the vehicle due to accidental collision, legal fees and third party injury or damage. Many commercial vehicle insurers have special packages to cover specialist vehicles and multi-vehicle fleets.

 

Property damage or theft

Buildings and contents insurance usually covers damage and theft to business property or products. Depending on the policy it could also protect businesses from the risks of fire, riots, storms and subsidence. Buildings and contents insurance usually covers the cost of repairing or rebuilding business premises and replacing equipment and stock. Your insurer will work with you to organise cover for specialist tools, equipment or machinery.

 

Employee protection

The Work Injury Compensation Act directs employers to compensate employees for [VW1] work-related injuries and occupational illness or disease. It applies to any employee regardless of salary level, including apprentices. In addition, employees who suffer injury at work can sue their employer outside of the Work Injury Compensation Act. Employee Protection insurance will help mitigate the costs of such compensation. In addition, many insurance firms offer health insurance as part of employee benefits schemes.

 

Business interruption

Mitigating the cost of refurbishment following a fire, or reimbursement for the loss of products may not be enough to stop your business from going under if you are forced to cease trading for a period of time. Business interruption insurance will cover you for losses incurred to your income while you are unable to trade. It is often sold as an optional extra in buildings and contents insurance. We at Atradius also act quickly to compensate for unpaid invoices, in recognition that maintaining cash flow can be vital for small businesses.

Related content

What is export credit insurance?

Export credit insurance operates in the same way as trade credit insurance and focuses specifically on trading relationships with customers based overseas.

What is political risk insurance?

In any trading environment, domestic or international, political decisions and situations can impact on commerce.

What is business insurance?

Business insurance protects businesses from financial losses caused by customers who don’t pay, property theft or damage, liability, harm to reputation and risks affecting workers.

Disclaimer

Each publication available on or from our websites, such as, but not limited to webpages, reports, articles, publications, tips and helpful content, trading briefs, infographics, videos (each a “Publication”) is provided for information purposes only and is not intended as a recommendation or advice as to particular transactions, investments or strategies in any way to any reader. Readers must make their own independent decisions, commercial or otherwise, regarding the information provided. While we have made every attempt to ensure that the information contained in any Publication has been obtained from reliable sources, Atradius is not responsible for any errors or omissions, or for the results obtained from the use of this information. All information in any Publication is provided ’as is’, with no guarantee of completeness, accuracy, timeliness or of the results obtained from its use, and without warranty of any kind, express or implied. In no event will Atradius, its related partnerships or corporations, or the partners, agents or employees thereof, be liable to you or anyone else for any decision made or action taken in reliance on the information in any Publication, or for any loss of opportunity, loss of profit, loss of production, loss of business or indirect losses, special or similar damages of any kind, even if advised of the possibility of such losses or damages.