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.