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What kind of insurance coverage do I need for a small business?

SME cafe owner

As the owner of a start-up or small & medium enterprise (SME), you’re likely to be managing every aspect of the business – from the day-to-day operations, to the balance sheet, to your employees’ welfare and more. As you work hard to keep the business going have you also considered if your business is well protected in the event of unexpected damages and losses?

Most small business owners often leave insurance coverage on the back burner and do not realise that safeguarding your business with relevant coverages is the first step to future-proofing your business. With the right insurance coverages in place, you can mitigate and minimise the impact of damages and losses.

Some commercial insurance policies can benefit every business, whereas others provide protection against selected risks that only affect specific industries or businesses. With various types of insurance available, ranging from General Liability, Cyber, to Personal Indemnity, one might think, “Where do I start?”

Choosing a commercial insurance that is relevant for your business can be daunting, especially when you require protection against different risks and exposures but also require a fuss free and cost-effective solution. That is why a SME package policy might be ideal for you.


What is a SME package policy?

Unlike standard commercial policies, a SME package policy is specially designed to address the concerns and needs of small business owners. With wide standard cover and optional add-ons, a SME package policy can provide SMEs with the protection they need, according to their requirements.

Benefits of a SME package policy includes:

  • lower costs
  • broader coverage
  • simplified documentation and administration


Key advantages of a package policy

  1. Wide degree of coverage

    A package policy can provide coverage against a wide range of risks given its broad product offering. It is a one-stop solution with coverages such as Property All Risks, Business Interruption, Liability, Work Injury Compensation and more!

  2. Flexibility

    You have the flexibility of selecting coverages on the policy based on your needs, by combining protection offered across various products offered in the package. You can also adjust the extent of coverage you require in order to cover these risks.

  3. Economies of scale

    SMEs often operate on a tight budget. Owners of small businesses are understandably concerned about how the cost of insurance will affect their bottom line, and having multiple individual policies adds to the cost of running a business. SME package policies are relatively affordable due to the lower administrative costs associated with having one single policy instead of three to four. Switching to a package policy could result in significant savings for you!

  4. Time saver / Documentation

    Getting a SME package policy doesn’t only result in cost savings – it also allows business owners to save time on documentation/administrative issues! Insuring your business under a single package policy means that you do not need to manage additional documentation or different renewals of multiple policies. Having an insurance solution which is simple and easy to manage is a key advantage for SMEs which often operate on lean manpower.

    With the COVID-19 pandemic situation, insurance is now more important than ever. Few industries remain unaffected by the pandemic, and most businesses in Singapore have experienced losses from business interruption during the circuit breaker. In an economic crisis, SMEs are also far more vulnerable as compared to bigger entities due to weaker cash flow and dependency on external factors. Every loss can have a significant impact on your business, so it is important that you safeguard your business against these risks and exposures.

    The current economic and market outlook may be uncertain, but the risks of running your business remain unchanged. Having adequate essential insurance in place will allow you to focus on what’s important – your business.


Our SME package policy

Chubb understands that SMEs are usually more vulnerable to fluctuating economic conditions and business interruptions due to smaller cash flows. That is why we designed Select+®, a package policy for SMEs, to offer wide standard cover with optional add-ons so you'll receive the protection you need, according to your requirements.

No part of this article may be reproduced in any written, electronic, recording, or printed form without written permission of Chubb.

Disclaimer - The content of the above article is not intended to constitute professional advice. Although all content is believed to be accurate, Chubb Insurance Singapore Limited (Chubb) makes no warranty or guarantee about the accuracy, completeness, or adequacy of the content of this article. Users relying on any content do so at their own risk.

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