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Singapore SMEs are at risk if lawsuits or business disruptions hit, as many opt for minimum coverage
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Other types of insurance that an SME may need but are not compulsory include business interruption insurance; property insurance for their building, machinery and inventory; employee benefits coverage; and trade-specific insurance such as for marine cargo, professional liability and cyber attacks.
ST PHOTO: LIM YAOHUI
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- SMEs often only buy mandatory insurance, overlooking crucial coverage like business interruption and employee benefits, says QBE Singapore's Goh Shun Quan.
- Price drives insurance decisions (70% in QBE's 2025 survey), leading to under-insurance and insufficient payouts when incidents occur.
- Insurers like Zurich offer tailored solutions, but many SMEs don't grasp insurance benefits until a major incident happens, according to Mr Sean Walker.
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SINGAPORE – Smaller companies in Singapore are subject to the same risks as any other businesses and, due to their size, having adequate coverage against major shocks could mean the difference between survival and oblivion.
Most small and medium-sized enterprises (SMEs) here, though, buy insurance that is mandated by regulatory or contractual obligations and nothing more, noted Mr Goh Shun Quan, head of underwriting for retail and SME at insurer QBE Singapore.
