Which insurance products are included in SME Package?
SME Insurance, also referred to as SME Package Insurance, is a commercial insurance policy specifically designed to protect small medium enterprises from the most commonly occurring risks under one convenient “umbrella” or product.
Depending on what your business specializes in, the SME packages will differ. Generally, they will include a main coverage in full limit and sub-limit or additional coverage such as:
- Work Injury Compensation
- Group Personal Accident
- Industrial All Risk
- Public Liability
- Directors and Officers Insurance
- Professional Indemnity Insurance
- Cyber Liability and Data Protection Insurance etc.
Which companies should get SME Package?
SME Package covers businesses in Singapore that operate out of an office, a retail store, a personal services shop, a food/beverage outlet, a clinic, or a factory/warehouse etc.
Some of the examples are Educational Institute, Financial Services, IT Industry, Construction, Personal Service Providers, Retailers, Healthcare etc.
Do I need SME Package?
SME Package is one of the most common type of insurance SME owners buy.
This insurance is highly beneficial and recommended to those SME owners who are looking for a convenient, cost-effective method to achieve broad protection against common business risks in Singapore at one place.
What is covered under Cyber Insurance?
Typically, Cyber Insurance coverage includes the loss of sensitive information through a data breach after your company has permitted or failed to stop unsanctioned user access to your company network. Cyber insurance covers notification costs, litigation costs, fines and penalties.
Who is vulnerable to a cyber-attack?
In today’s technological world, everyone is vulnerable to a cyber-attack. If you have a website, use internet or you have social media presence, you are a target.
What is Malware?
Malware is used to disable and damage computers and networking systems.
How would I know if my small business is being targeted?
With more than half of small businesses suffering cyber-attacks, we can assume that small business is always a target. In 2014, 64 percent of small businesses experienced a data breach.
Will my Cyber Insurance protect me if an employee caused the attack?
Yes. Cyber Insurance protects you in the event of a malware and phishing (and other network breaches) attack even if it has been caused by an employee.
In which situations does Cyber Insurance not cover me?
Similar to same case of other types of insurance policies, yes, there are situations in which your Cyber Insurance can deny coverage. This happens most often when you have not made your premium payments or there’s reason to believe you have committed fraud.
Why do I need Professional Indemnity Insurance?
There’s a lot to consider when running your own business, especially the responsibility of getting things right. Professional Indemnity (PI) cover takes away the legal and financial worries should a PI claim arise to ensure businesses continues to operate as usual.
Below are few reasons why every company needs a Personal Indemnity Insurance:
Companies will avoid mistakes and give the best advice or services possible to ensure good client relationships. However, mistakes can happen, leaving the company open to huge legal costs and compensation claims. Negligence is a core cover for PI and would provide protection against allegations made.
In today’s world, clients expect high standards of service and are more inclined to resort to litigation when this has not been met. PI insurance provides protection against such claims.
Even with an extensive training programme for new and experienced staff, the way employee’s carry out their work activities is ultimately beyond the company’s control. This could leave the company exposed to liability claims. PI cover gives peace of mind in the event of an employee’s negligence.
Now a day, is a social media era. There is an ease of information. Together with the ease, there comes some side effects of this as well. An example would be staff may unintentionally produce materials that infringe intellectual property rights, e.g. using online images without the owner’s permission, which could lead to litigation for copyright. PI can protect a company against legal costs and compensation.
Is Professional Indemnity Insurance compulsory?
Professional indemnity insurance isn’t compulsory under the law. But the rules of some regulators and professional bodies make it compulsory for some professions, including solicitors, financial advisers, accountants and architects. It is also required by some client contracts.
How much cover do I need?
In determining how much cover you need, it is important that a realistic view is taken of the potential damages and legal costs for which your business could become liable. Being under-insured can be almost as financially disastrous as being without insurance at all.
Often the level of cover that you require is determined by your contractual obligations. Only you can assess the amount of cover (limit of indemnity) appropriate for your business.
What is covered under Professional Indemnity Insurance?
Usually, Professional Indemnity Insurance covers legal liability to pay damages (including claimant’s costs, fees and expenses) plus your defence costs and expenses arising out of;
- Any negligent act error or omission
- Loss of or damage to documents
- Dishonest, fraudulent or malicious acts of employees
- Unintentional breach of confidentiality
- Infringement of copyright and intellectual property rights etc.
DIRECTORS & OFFICERS LIABILITY
Is D & O Liability Insurance necessary?
Directors and Officers (D & O) Liability Insurance is often considered as one of the most important types of business insurance. It mitigates the risks of legal claims a business is exposed to. It protects the key stakeholders in the organization. It is important to ensure that these individuals continue performing well without worrying about being sued.
What is covered by D & O Liability Insurance?
Directors and officers (D & O) Liability Insurance protects the personal assets of corporate directors and officers, and their spouses, in the event they are personally sued by employees, vendors, competitors, investors, customers, or any other parties, for actual or alleged wrongful acts in managing the company.
How much D & O Liability Insurance do I need?
Like any other insurance policy, it solely depends on the company itself, what type of insurance coverage they want for their Directors and officers.
A company where the directors are sued right and left would require a bigger coverage than a company that is less likely to get sued. It also depends on the kind of business the company runs, the industry it is in and various other factors. At the end, nobody wants to overspend and at the same time get a coverage that’s insufficient.
How much Director’s & Officer’s Liability Insurance Cost?
The cost of Directors and Officers liability insurance depends on the kind of coverage you’re getting. Based on your needs, risks and several other factors, the policy could cost you accordingly. For instance, if your directors and officers don’t particularly have a lot of risk exposures, you wouldn’t require a big coverage; so the policy would be relatively cheaper. But if they are exposed to risks of legal claims, you would ideally want to have a wider coverage, which would cost more. Also, a lot depends on the insurance company you’re buying the insurance from.
Does D & O Liability Insurance cover former directors?
Yes, D & O Liability Insurance covers former directors. Any claim made against them for their actions while they were in that role of the director – it is covered.
Does D & O Liability Insurance cover negligence?
Yes, D & O Liability Insurance covers negligence. If the directors and officers fail to fulfil their duties due to negligence, any claims made against them will be covered by this insurance.
Are fines and penalties covered under D & O Liability Insurance?
No, D & O Liability Insurance does not cover punitive damages.
What is not covered under D & O Liability Insurance?
It depends on the kind of plan you’re buying and who you’re buying it from. That said though, there are a few things a D & O insurance does not cover. It includes breach of contract, fraud, criminal activity, dishonest conduct, punitive damages, intentional wrongdoings and more. Again, this list isn’t exhaustive. Before buying your policy, it’s advisable to have a fair knowledge of what it won’t cover.
Does D & O Liability Insurance cover board members?
Yes, board members are covered in the D & O Liability Insurance, unless otherwise mentioned in the outlined policy.
GROUP EMPLOYEE BENEFIT INSURANCE
What is Group Employee Benefit Insurance coverage?
Group Employee Benefit Insurance is a type of insurance plan that covers a group of people, usually comprised of employees of an organization under one single policy. It provides the same level of insurance coverage to all the members of the group eliminating the need to buy individual policies for each person.
What does Group Employee Benefit Insurance cover?
Insurance coverage under Group Employee Benefit policy usually includes inpatient and outpatient treatment, accidental hospitalization, COVID insurance, daily hospital benefits, critical illness cover, dental, maternity coverage etc. Employers can choose what type of insurance coverage do they want for their employee.
Who pays for Group Employee Benefit Insurance?
The premiums of Group Employee Benefit Insurance policies are typically paid by the employer as an incentive for employees.
In some cases, the employer and the employee share the costs of the insurance policy, with each contributing a specified amount each period. This allows employees to have much wider coverage for a smaller monthly premium than would have to be paid otherwise, were they would have to pay for individual insurance themselves.
Is medical insurance compulsory for employees in Singapore?
Most employers in Singapore do provide basic health insurance as one of their employee benefits, and some also throw in healthcare perks such as reimbursement for medical and dental expenses. The law does not make it compulsory for employers to provide employees with health insurance.
However, employer must pay for employee’s medical consultation if they have taken paid sick leave and their MC is issued by a government or company-approved doctor or dentist, including specialists.
MARINE CARGO INSURANCE
What does Marine Cargo Insurance cover?
Marine Cargo Insurance (also known as shipping insurance or freight insurance) covers the loss, damage, or theft of commodities while in transit.
What are the types of marine losses?
Broadly, the types of marine losses are categorized into two forms – total losses and partial losses. The former indicates a 100% or near-100% loss of the goods’ value, while the latter suggests a considerable but not complete loss or damage of the goods’ value.
Who should buy Marine Cargo Insurance?
Marine Cargo Insurance can be taken by buyers, sellers, import/export merchants, contractors, banks—or anyone engaged in the import and export of goods or transportation of it within the country.
What are the advantages of Marine Cargo Insurance?
Some of the advantages of purchasing this insurance are: Insurance provides financial stability to the business. It helps manage the risks and conduct business without much worries. It compensates for any financial loss that one faces during the transit of goods.
How much does Marine Cargo Insurance Cost?
Like any other insurance coverage, this totally depends on your business needs, what you ship, and other variables. Some policies cost under $500, while others easily surpass $10,000. The best way to estimate the cost of Marine Cargo Insurance is to get a quote.
WORK INJURY COMPENSATION INSURANCE
Who should buy Work Injury Compensation (WIC) Insurance?
In Singapore, it is mandatory for all employers to have adequate Work Injury Compensation (WIC) insurance for
- All employees doing manual work, regardless of salary level and
- All employees doing non-manual work and earning $2,600 or less a month.
Why is WIC insurance compulsory only for some employees?
WIC insurance gives greater assurance of compensation to more vulnerable group of workers. The vulnerable group includes those who are doing manual work and with low salary structure.
However, it is always good to buy WIC Insurance for all the employees to have a peace of mind when a claim is made under Work Injury Compensation Act (WICA). Although employers are not required to buy WIC Insurance for these employees, but when a valid claim is made by them, employers have to compensate them regardless of whether they are insured or not.
Can a disabled worker be covered by WIC Insurance?
Yes. Current market practice does not require companies to declare if they have employees with disabilities for WIC insurance. The top WIC insurers also shared that they will offer coverage as long as employers deem that the employees are suitable for the jobs.
How long should WIC Insurance coverage be?
It is common for WIC Insurance policies to be for a 12-month period, and for these to be renewed yearly.
Can an employer deduct the WIC Insurance cost from employees’ compensation package?
No, an employer cannot deduct or reclaim the cost of insurance premiums from the employees’ compensation package.
Can an employer use project insurance instead of employer’s insurance for work injury compensation?
Employer must get annual WIC insurance for their employees. Under WICA, the employer’s insurance policy is responsible for claims when there are multiple policies in force.
Project insurance does not cover all instances of work injury, and employer may be charged for non-insurance if their employees are only covered under project WIC policies.
What type of claims can be made under WIC Insurance?
The Work Injury Compensation Act lets employees claim for medical leave wages, medical expenses and lump sum compensation for permanent incapacity, if any, or death. There are limits to each type of compensation.
Can I claim WICA compensation for COVID-19 infection?
Covid-19 infection is compensable under the WICA if an employee contracted Covid-19 from exposure due to work.
Employers can claim reimbursement from their WIC insurers.
Can a foreign worker claim WICA compensation for COVID-19 infection if it was contracted while staying in dormitory?
The dormitory is not considered as a workplace. Hence, a foreign worker infected in dormitory will not be eligible to claim compensation under WICA.
Can a compensation for injuries resulting from work-related fights, especially if the fight was due to dispute over work-related matters be claimed?
Employees injured in work-related fights will be eligible for compensation, provided these injuries were sustained in any of the following scenarios:
- In the act of self-defence.
- While defending another individual.
- Break up the fight
- Safeguard lives or property
- Maintain law and order
- As a result of an assault to which he did not retaliate.
Employees who deliberately participate in or instigate fights at the workplace, and sustain injuries in the process, are not eligible for work injury compensation, regardless of whether the fight was due to work-related.
How and when can a WIC Insurance Claim be made?
For Fatal Accidents:
- Employer must notify MOM as soon as possible.
- Submit Accident Report within 10 days from date of accident.
For Non-Fatal Accidents:
- Submit Accident Report within 10 days from date you were first notified of the accident.
How long is an employer responsible for an injured foreign employee’s well-being after their work pass has expired or been terminated?
The employer remains responsible for their foreign employee’s upkeep and well-being until they return to their home country. An injured employee should continue to stay in accommodation provided by the employer.
FOREIGN WORKER MEDICAL INSURANCE
What does Foreign Worker Medical Insurance cover?
Foreign Worker Medical Insurance provides cover for a foreign worker’s medical expenses, including hospital bills arising from treatment for causes that may not be work-related. This also covers compensation, including medical expenses, for work-related injuries. It applies to both local and foreign workers.
How is medical insurance for foreign workers different from the other insurance requirements?
Foreign Worker Medical Insurance provides cover for a foreign worker’s medical expenses, including hospital bills arising from treatment for causes that may not be work-related.
It serves a different purpose from the other employer-paid insurance requirements, such as:
- Work injury compensation insurance. This covers compensation, including medical expenses, for work-related injuries only. It applies to both local and foreign workers.
- Personal accident insurance for foreign domestic workers (FDWs). This insures against accidental death and permanent disablement, not medical expenses.
Is medical insurance compulsory for foreign workers in Singapore?
Yes, as an employer, you must buy and maintain medical insurance coverage of at least $15,000 per year for each Work Permit holder. The insurance should cover inpatient care and day surgery, including hospital bills for conditions that may or may not be work related.
If my company has existing medical insurance for all employees, must I buy a new plan for Work Permit and S Pass holders?
If you have an existing medical insurance plan for your Work Permit holders and S Pass holders, you do not need to buy a new plan as long as the existing plan meets MOM’s stipulated requirement.
If the coverage provided by the existing insurance plan is inadequate, you will have to adjust the coverage to meet the requirement.
Do I need to pay my Work Permit holder’s outpatient treatment costs?
Yes. As an employer, you are responsible under the Employment of Foreign Manpower Act for the cost of both inpatient and outpatient treatments.
Are employers responsible for the cost of a Work Permit or S Pass holder’s dental treatment?
All employers who wish to bring in foreign workers are required to bear the full costs of employing them, including the cost of medical treatment for S Pass and Work Permit holders. This is to ensure that foreign workers’ medical bills do not remain unpaid and instead get passed on to taxpayers.
If the dental treatment is deemed necessary for their health by a Singapore-registered medical or dental professional, you will have to bear the cost of dental treatment. This applies even if the condition is not work-related.
For peace of mind, employers have the option to purchase additional insurance for added protection.