Managing Business Risks with the Right Business Insurance

Entrepreneurs face many challenges when operating a business: hiring employees, selling products, finding sources of financial backing, and more. Managing the challenges and risks constitutes a major element of your business. Most business risks can be managed with the right business insurance policy. Traditionally, companies use insurance to transfer these risks to an insurance company. The insurance company will then indemnify your losses when these events do occur.

Why does your business need insurance?

Though some business owners perceive insurance as a cost, it is invaluable in the instances when it is needed. For instance, any natural disasters such as a fire, flood or storm can bring an end to a business quickly. Insurance will minimize damages caused by such unforeseen events. There are some types of insurance that reflect the reputation of your company and make the owner look responsible, while others work to drastically reduce your overall financial risk.

• Liability Insurance: Liability insurance protects a company's assets and pays for obligations when there are legal liabilities. For example, if an employee gets hurt on your business premises or when there are property damages or injuries, this coverage will indemnify your business. There are two types of liability insurance: public liability insurance and product liability insurance. Public liability insurance protects your company from accidental injury and property damage claims. Product liability insurance protects business in the event a product causes bodily injury or property damage.

• Property Insurance: Property insurance protects your business premises from any potential damage or loss. This insurance covers your commercial building, business contents, equipment, and even inventories. You can repair or replace your business property, contents and equipment, if they are damaged, stolen or destroyed in a fire or natural disaster. This insurance will help your business keep operating when that property and business contents are damaged.

• Workers' compensation insurance: Workers’ compensation insurance covers medical treatment, disability and death benefits in the event an employee is injured or dies as a result of his or her work at your business premise.

• Business interruption insurance: Your business may suffer from lost income in the event of a disaster or catastrophic event. This type of insurance is applicable to companies that require a physical location to do business.

Business insurance is vital for any new venture and even successful businesses. Liability insurance and other business insurance policies will not only help you manage risks but they can also enable your business run efficiently. However, it is important to have the right business insurance in place. Contact a reputable business insurance provider to discuss your requirements.

3 Mistakes That You Are Making with Your Life Insurance Policy

Buying life insurance in a country like Singapore is one of the most important financial decisions you may have to consider. It is like leaving an inheritance for your loved ones when you die. A life insurance policy provides financial support for the livelihood of your family in the event of your passing. However, this insurance is not one of those “buy and forget” policies. You cannot just take it and forget about it until your family really needs it. If getting right coverage is important for your financial planning, then avoiding certain mistakes after you buy the right insurance policy is also vital for a secure future. Here are three mistakes you should avoid when it comes to your life insurance policy.

Forgetting to make a nomination

Singaporeans often overlook the process of making a nomination while filling their policy form. In fact, a recent survey has revealed that only 2% of life insurance policies have named beneficiaries while a whopping 98% of Singaporeans have not bothered to fill in that piece of paper. When you do not name a beneficiary, then it takes time for your family to receive the claims amount if anything unfortunate should happen to the insured. The insurer may be unable to determine a proper claimant, resulting in tussle among family members.

Mixing insurance with investment

Insurance policy and investment have different roles. Never mix them. Always keep your retirement savings and your life insurance separate. Although bundled insurance-cum-investment products do work for some customers, most people are not suitable for this bundled scheme. There is an old saying – “Stick with term and invest the rest.”The purpose of life insurance is solely for risk protection. If you have taken life insurance and you die, your nominee gets something. If you live, no one gets anything. It is a raw deal. Getting 'something' on maturity is driving many people to costly insurance plans that offer very little insurance protection. Instead of mixing investment and insurance plans, go for term insurance. It is the purest, cheapest and best form life insurance available in Singapore.

Keeping the policy on auto-renewal

The auto-renewal option offers peace of mind. Your insurance will automatically get renewed and chances of a policy lapse will not be there. However, auto-renewal can make your insurance plan more costly. As rates of life insurance products keep on changing, check on the current low rates offered by your insurer while renewing your policy. Take for example, you were a chain smoker when you bought the insurance policy, but now you have stopped smoking. Today, your insurance rate ought to be less than what you paid when you have purchased it.

To sum it up, you should always perform your due diligence before buying a life insurance policy in Singapore. Once you have decided which policy is best suited to your needs, avoid the aforesaid mistakes before and after buying life insurance to provide your family the financial support they need at an otherwise difficult time of loss.

3 Times Travel Insurance Would Be a Lifesaver

Frequent travellers in Singapore will know the importance of travel insurance and how it can protect them against the unexpected events. However, for some, travel insurance is just one more expense and they often ask the question – “Do we really need it?” In actuality, buying travel insurance is a smart move. Insurance is like emergency care for when things unexpectedly go wrong while travelling in a foreign country. Here are some of the more common examples of when travel insurance would prove invaluable:

1. When You Miss Your Flight

A missed flight might occur when a traveller cannot board their scheduled flight on time due to scheduling errors or unforeseen circumstances. There are many reasons for which one can miss their flight ranging from something as simple as getting into a traffic accident on the way, to having their passport stolen, or just being too ill to travel. Your travel insurance coverage for those missed flights will reimburse you for your non-refundable trip expenses. Remember, insurance cannot cover missed flights in situations where it is due to personal negligence, like when you forget your passport, waking up late, or reaching the airport late for security check-up.

2. When you are robbed abroad

Being robbed while on holiday is always a tragic circumstance, but having travel insurance can certainly lessen the impact it has on your trip. Travelers are easy targets of pick pocketing and robbery. It has been found that 33% of all travel insurance claims are for stolen personal property. Depending on the coverage you chose, important personal possessions and essential documents like your passport could be covered by the insurance. Some policies will also reimburse you for losses that you may incur due to a stolen passport. It is still advisable to report the incident to the police, and show the police report to your insurer when making an insurance claim.

3. Medical Emergency

Falling sick or getting injured on vacation or while on a trip to a foreign land is never a good feeling. Unexpected incidents, such as breaking an ankle trying something new, your child getting food poisoning or any other medical emergency, can turn a dream trip into a nightmare. However, travel insurance can ease the pain of such emergencies and reimburse you for all costs incurred during treatment abroad. Some insurers in Singapore even offer medical travel insurance plans that specifically protect you while travelling overseas. As always, make sure to check the terms and conditions section of your insurance contract to know for which emergencies you and your family are covered for while traveling.

Travel insurance packages in Singapore are not made the same and there are many different things to consider when buying travel insurance online or from an insurer directly. It’s important to make sure you are getting the right coverage so that when you get into any of the aforesaid situations, you can get your losses covered by your travel insurance provider.

3 Tips to Follow to Save on Car Insurance

Owning a car in Singapore is already very costly, so why suffer any further expense by paying more than you need to only our car insurance? With car coverage rates constantly rising in Singapore, it seems that premium prices won’t be getting any cheaper for car owners. That’s why when buying or renewing auto insurance, it is important to know what you are actually paying for, what you get in the event of an accident and how your premium rates are being decided by the insurer. Here are three ways to avoid getting financially drained by your insurance policy:

#Tip 1: Drive safely

In Singapore, driving safely will not just save your life, but it will also lower your premiums as well. It is thus important to maintain a good driving history with no traffic violations or accident records. If you have no claims nor accidents on your record, then your insurance company will reward you for being a safe driver who is not accident-prone. Your insurer may provide No-Claims Discounts (NCD) benefits, which will increase with the number of years you maintain a clean driving record.

#Tip 2: Maintain zero points on your license

You will be rewarded for not violating any traffic rules for three consecutive years by the Singapore Traffic Police. You can request for a Certificate of Merit from Traffic Police and show it your insurer to lower your car insurance premiums. This can save you up to an additional 5% on your car insurance in Singapore in addition to any NCD savings you are already getting from your insurer. Note: Car insurers also reward more mature drivers. If you are above the age of 30 years with more than two years of driving experience, you can get up to a 15% discount off premiums.

#Tip 3: Avoid the middleman

You can get your insurance policy directly from the insurance company or through an agent. Always avoid the middleman, and you will be able to save up to 20-30% of commission markup. The best way is to get car insurance quotes online from the different insurers directly so you can compare and save on car insurance. That will also help you understand the ideal coverage for your car, the right price and possible discounts/benefits.

Before choosing car insurance in Singapore, make sure you’re knowledgeable about any discounts and savings that come with it. The aforesaid tips will help you keep more money in your pocket and save costs on your car insurance premium.

3 Risks for Which Every Business Needs Insurance

Every business comes with its own risks. Although challenges and failures cannot be avoided, they can be mitigated with proper business insurance. Business insurance covers the array of risks that you may face during the course of your operations and, in a financial crisis, a business without insurance could easily end up going under. Today, businesses face ever more risks in our fast-paced society. Here are some of the biggest risks, and how you could mitigate them.

• Data breaches

Businesses in all industries face an increasing number of cyber security threats. According to a recent survey, only approximately 61% of the businesses that suffered a sensitive data breach took action afterwards, and only 49% reacted after their business systems and computers were hacked. Solving this problem requires a combination of a secure network protocols and the implementation of strict security practices.

However, even with these practices, businesses can never be completely immune to attacks and unrelated attacks on their server hosts can leave them vulnerable. By taking cyber insurance, business owners can also protect their business from the costs of data breach penalties and the huge public relations fallout.

• Human capital risks

Companies face the paradox of requiring more human capital to grow and flourish, but this increased growth comes with the added risk that a growing workforce can represent. This, unfortunately, grows exponentially as you become larger and larger and mismanaged risks can balloon out of control. While not a solution, having commercial liability insurance coverage will at least help to protect you, your business and your employees from claims involving bodily injury or property damage.   

            

• Natural disasters

Natural disasters such as hurricanes, snowstorms, and floods while unpredictable could easily sink your business overnight. Though the risk might seem small and distant, coverage does not usually cost very much and is always good to have. In the minute chance that it could happen, damage is never insignificant and not only might you have to rebuild, the costs of shutting down your business for days or weeks might be prohibitive. The wisest business owners will insure their commercial building and its contents for their full replacement value and rather than the market value.

Companies that are not fully insured or that are under insured may look like they are getting ahead of you. But you will definitely be grateful the when an unfortunate event that proves to merely be a setback for you, turns out to be the downfall of your competitors. Never put your business in jeopardy by risking its loss to an insurable disaster. Always clearly assess your business requirements and its associated risks to determine the best business insurance or commercial liability insurance to meet your needs.

3 Occasions When Life Insurance Might Not Pay Out

A life insurance policy seems like a straightforward idea, existing to provide a lifeline to your family in the darkest of times. Occasionally, however, there are circumstances when insurance companies may not pay out, leaving your family bereft of the support that they might desperately need. Though it should be, making an insurance claim is not always as easy as simply talking to your company after a life-changing event. There are often other factors that the insurance company will also consider that may impact the size of your payout. So, before you rush off to your nearest insurance company, take a moment to consider these events in case they might be applicable to your situation.

Suicide

Policies often have very strict rules on paying out when a death happens due to suicide. In Singapore, the rule of thumb is that if the insured commits suicide within a year of the date of commencement of a term life insurance policy, or two years of a life insurance policy, the payout is voided. It is tragic when someone chooses to commit suicide, and it can be even more difficult for the family to potentially be left without their breadwinner and be without this safety net. 

Fraud

The start of any policy begins with a window known as the period of contestability. During this period, companies will investigate any claims made to determine if false information was given on the application. Payment of benefits will be denied if you lied, and may be denied even if the cause of death has nothing to do with the misrepresentation on the application. Fortunately, most Singaporean companies include an incontestability clause after the probationary period which prevents them from denying payout due to misrepresentation.

Non-payment of premiums

If there is a lapse in payments for your life insurance in Singapore, your insurance company will usually give you a short grace period before terminating your policy. This period may be anywhere from 15-30 days, and companies will usually keep the policy in effect through the period. But once the period lapses, your policy will be cancelled. Depending on the circumstances, paying off outstanding premiums will allow the continuation of your policy. This is not always guaranteed and while there are outstanding payments, be aware that you will not enjoy any benefit outside of the grace period if anything unfortunate should happen.

While not a comprehensive list on the obstructions you might face while making a claim, these are perhaps a few of the more important clauses you should always be aware of. Whether you purchase a term life insurance or a life insurance policy while here in Singapore, always do your best to perform a thorough research on all the available options.

Did you face any problems while trying to make a claim? Share your story with us.

Home Insurance in Singapore: Amazing Facts You Didn’t Know

Housing is one of the most valuable assets Singaporeans own, so it makes perfect sense to protect it by taking home insurance plan. When you your dream HDB flat, condominium, or a landed property, you spend thousands of dollars on renovations and furnishings. A simple fire can simply wipe out your dream home, leaving you financially devastated. If you haven’t taken out a home insurance policy yet, then read this before you head to an insurance provider in Singapore.

Basic fire insurance may not cover everything you want

Fire insurance in Singapore comes with premiums a slow as $2 for a 5-year policy. A Fire Insurance Scheme relieves flat owners of the financial burden of repair work after the unfortunate event of a fire. It covers damaged internal structures, fixtures, as well as areas built. Unfortunately, many people mistake this for a proper “home content insurance” policy. Do not confuse fire insurance with home content insurance; they are two completely different things. Fire insurance is cheap and it only covers damage to the interior structure of your flat. It excludes home contents such as furniture, renovations and personal belongings.

Home content insurance covers your possessions 
                                                                     
Home content insurance is what will protect you against damage caused by hazards such as fire, lightning, and even theft. It covers all your valuable worldly possessions and it also covers things like fixtures, fitting, accidental glass breakage coverage, loss of personal papers, accidental death of pet, loss of personal money, etc.

You can insure your home loan too

What is the point of insuring your home loan? Life is full of risks and unforeseen situations. It hardly ever works according to our plans. You can take mortgage insurance – such as Mortgage Reducing Term Assurance (MRTA) – to pay off your loan in the unfortunate situation such as permanent disability or death. Should anything happen to the home loan holder, your mortgage insurance company will then handle the outstanding housing loan, alleviating the financial burden from the family.

Your insurer can help you get cheaper mortgage interest rates

Some insurers in Singapore provide a “home concierge service”, where they can put you in touch with a good mortgage broker, help you in refinancing and, even call plumbers and general contractors for you when you need them.

If you’re planning to buy a home insurance policy for your HDB flat, condominium or landed property in Singapore, these facts would help you decide on the best plan for your home. If you had any experiences where your home insurance policy has helped you save money, then share it with us in the comments section below!

Top Health Insurance Tips for Expats Living in Singapore

When you move to another country, you might not get access to special benefits offered to permanent residents such as local national health system and guaranteed income in case of any health problem or accident. If you have moved to Singapore recently or planning to move soon, you might already know this fact - Singapore was ranked #1 in 2016 for being the most expensive city to live in in the world. As such, uninsured individuals, such as expats, may face huge expenses in the event of unforeseen circumstances. It’s highly recommended that expats living in Singapore protect themselves with a health insurance plan that best suits their needs. Check out these health insurance tips before you purchase expat insurance.

Decide between local or international health insurance plans

International health insurance plans are offered by specialized medical insurance providers. For the local health insurance plans, the most popular one is the integrated shield plans (IP). This plan is currently offered by AXA and other local insurance companies. IP insurance plan is linked to Singapore’s national medical insurance scheme - MediShield. However, some insurance companies have a foreigner version for the Integrated Shield Plan. There are other local insurance plans that are not linked to MediShield, but they have a small pool of policyholders in Singapore.

If you plan to stay in Singapore for the entire duration of your work period, then a local plan may be a good option for you. Local health plans tend to have lower premiums. If you travel frequently to other countries apart from Singapore, it is recommended to secure international health insurance so that you can enjoy your policy’s benefits worldwide including Singapore.

Check if your provider allows you to build a personalized portfolio of coverage

Some insurance companies may provide you the option to build your own personalized portfolio of coverage by customizing the annual excesses, and length and area of coverage. From entry-level medical insurance to the most comprehensive package, expats can enjoy inpatient, outpatient, dental, optical, and wellness benefits with personalized portfolio.

Buy a plan from a licensed insurance company

Most insurance companies in Singapore are excellent and trustworthy. However, as an expatriate living in Singapore, it is important for you to verify whether or not your insurance broker is authorized to provide you their services. Your insurance broker must be listed in the General Insurance Association’s Agents Registration Board (ARB). The insurance provider must also have license for life insurance, investment-linked policies, and license for providing financial advisory services.

When you eventually sit down to choose your health insurance plan and provider, you must spend some time to decide what would be the best expat insurance option for you and your family and what would benefit your family on a medium to long term basis.

Corporate Life Coverage Plans: Is it Important to Take Another Insurance Policy?

Most corporations and employers nowadays offer group insurance plans to ensure that their employees get optimal support while dealing with their health and medical issues. As soon as you join a multinational company or a world service organization, your enrollment in to group life insurance is almost confirmed and you can avail the benefits as per your own comfort. Many a time, your organization may also offer life coverage to you for ensuring that you live a stress-free life. If you think that you must take care of your family or loved ones, even if an accident takes your life away or makes you completely helpless, then take a life protection policy. Read below to know about why you must take a personal life assurance plan:

1. Avoid Loss of Coverage in Case of Job Switches

If you switch your job or its situation changes, then it is confirmed that you’ll lose your life coverage. It doesn’t really matters, whether the change in the job situation is because of change of status from temporary to permanent, employe being laid off, or any other unfortunate reason. Therefore, it is important to have a personal life over that stays with you no matter where you work or reside. 

2. Loss of Coverage After Retirement or Mentioned Age

As per company policy, your life insurance cover may discontinue after attaining a particular age or getting retired from that firm. Many a time, people may lose their insurance coverage when they pass a certain age or retire. Since old age is the prime time when you need your insurance the most, you may not actually have it. 

3. Employer Has a Full Control 

Since your employer is the prime controller of the policy, there are high chances that they may change, reduce, or even terminate the coverage. It is important to consider that they may not take your consent, before making any amendments in the insurance policy, you must have a backup plan to stay protected.

4. You Have Limited Options and Coverage 

Referring to the point above, employer has full control over your policy, hence, the options you have are quite limited. There is no feasibility of getting the coverage tailored as per your specific needs and requirements, thus, leaves you exposed to great risks.

Explore the web and select a personal or term life insurance, based your budget, age, and current financial status to ensure a hassle-free and risk-free tomorrow!