“Oh no, I didn’t think of it and I should have protected my company’s interests!”, a SME owner said during one of her conversation with a friend. Sharing her experience, she said she was very focused on getting her business going – sales, staff, customer relationships, rental and expenses – and, felt that she can save some money from not buying insurance for her business, and it is unlikely that the unexpected would derailed her operations.
SMEs, defined as companies that employ less not more than 200 staff, with a turnover of not more than S$100 million, stand at 271,800 registered entities in Singapore and responsible for 71.4% of the total employment¹.
Compulsory by law, all companies that employ staff that does manual work, or earn $2,600 or less must buy the Work Injury Compensation (WIC) insurance. Besides this, most SMEs do not buy other form of insurance.
Why SMEs do not buy insurance for the company?
Generally, most SMEs do not buy insurance to cover the unexpected over their property or businesses. The attributing factors may include – one: “unnecessary additional expense”; two: don’t really understand why they need, and what to expect; three: accessibility to purchasing the policy without much hassle; and four: understanding the benefits that outweigh the cost.
Company protection is a necessity
In business, there are already many things the SME owners have to take care of, in order to manage the company. And, there are also many things that can go wrong that is either within or out of their control. No one can predict the future and that is why it is imperative to be well prepared. So, isn’t it better if protection solutions can be provided for the company in case something adverse occur – and, one less worry.
There are various solutions available for SMEs to consider for better coverage of their needs by different providers.