5 SIGNS YOUR BUSINESS MIGHT BE UNDERINSURED
Think your business is fully protected? You might be surprised. Here are five warning signs that your current insurance coverage may not be enough — and what to do about it.
LOOKING FOR CORPORATE INSURANCE?
Running a business in Singapore comes with its fair share of risks — from property damage and legal liabilities to cyber threats and employee-related issues. While most business owners understand the importance of insurance, many unknowingly operate with inadequate coverage, leaving themselves exposed when the unexpected happens.
Here are five common signs that your business might be underinsured — and what you can do to fix it.
1. You Haven’t Reviewed Your Insurance in Over a Year
Singapore’s business landscape moves fast — rental costs, manpower expenses, and asset values can all change within months. If your insurance policies haven’t been reviewed in over a year, there’s a good chance your coverage no longer reflects your current risks.
✅ What to do:
Schedule an annual review with your insurer or broker to update your coverage based on any operational changes, asset growth, or business expansion.
2. You Rely Only on Basic Coverage
Many SMEs in Singapore stick with mandatory or minimal policies, such as Work Injury Compensation Insurance (WICA) or Public Liability Insurance, without considering additional protection.
But what about business interruption due to renovations, a fire, or supply chain disruption? Or data breaches and cyberattacks? These risks are real and rising, especially for businesses that rely heavily on tech.
✅ What to do:
Assess whether you need additional protection such as:
Business Interruption Insurance
Cyber Liability Insurance
Professional Indemnity Insurance
Product Liability Coverage
3. Your Asset or Stock Value Has Grown
Have you expanded your inventory, moved to a larger office, or purchased new equipment? If your policy still reflects outdated asset values, you may be undercompensated in the event of damage or loss.
✅ What to do:
Regularly update your sum insured based on your current stock value, equipment upgrades, and office improvements. Always insure for replacement cost, not just the original purchase price.
4. You’ve Hired More Staff or Changed Roles
In Singapore, WICA is compulsory for all manual workers and non-manual employees earning $2,600/month or less. But many businesses fail to update their policies when hiring, increasing exposure if a workplace injury occurs.
Similarly, if you’ve promoted staff into new roles or changed job scopes, the risk classification may have shifted, affecting premiums and claims eligibility.
✅ What to do:
Keep your insurer informed of workforce changes, including headcount, roles, and salaries. Ensure your policy meets WICA compliance and accurately reflects the risk level of each job function.
5. You Don’t Have Enough Coverage for Legal Liabilities
Singapore’s business regulations are strict, and legal claims — whether from customers, partners, or even ex-employees — can be costly. Without adequate liability coverage, one lawsuit could cripple your business.
✅ What to do:
Ensure you have appropriate limits for:
Public Liability
Directors & Officers (D&O) Insurance
Professional Indemnity (for service-based businesses)
🛡️ Final Thoughts
Underinsurance isn’t just about having no coverage — it’s often about having the wrong type or too little. Whether you’re a startup founder in a WeWork office or an SME owner in an industrial estate, taking time to review your policies is a smart move.
Consider speaking to an insurance advisor who understands the Singapore market and can customise a plan that grows with your business.