In simple words, business insurance is a cover which cushions businesses from losses that might occur during the normal course. There are many types of business insurances in the market,all of which are tailored to meet the needs of different natures of businesses.
Types of Business Insurance:
- Professional liability insurance:
Also known as professional indemnity insurance, it protects the company against claims that a professional service provided by the company caused the client to suffer financial loss.
- Property insurance:
provides protection against risks to property such as theft,fire, natural and weather damages.
- Product liability insurance: Product liability insurance Singapore:
indemnifies against legal liability in respect of accidental loss to third party arising in connection with the business anywhere in Singapore or a specific place of business.
- Vehicle insurance
Provides protection against theft, damage (physical), and injuries caused by or to the vehicle.
- Workers’ compensation insurance:
It covers lost wages and medical treatment which might be caused due to work-related injury or illness.
Myths Surrounding Corporate Insurances
A common myth is that owners of small business don’t need any other insurance as home insurance will provide coverage to home-based businesses. Providing some cover, it is still not adequate for the whole business. Another misconception prevalent is that Workers’ compensation insurance is not necessary if there aren’t any employees in the business. However, this is not the case. Sometimes even sole proprietors may be required to get the insurance. Cover provided differs according to the number of employees, classification of workers etc.People also tend to think that Vehicle insurance is not necessary when personal vehicles are used for business.
What proprietors need is insurance best suited for their business. They can hire a reputable broker for professional help and take the number of insurances which is needed by their company not giving into the myths surrounding them.