Many business owners tend to overlook the importance of having business insurance. They are put off by the “hassle” and feel that things will fall into place and “take care of themselves.” This is a rather complacent mind-set especially in Singapore, where almost 70% of the labour workforce is found in small and medium enterprises.
With this mentality, businesses are setting themselves up for a hard fall when/if anything untoward happens. As shown by countless case studies such as the famed Swatow Restaurants chain closure of its 18 restaurants, there are many unforeseen situations that can threaten the financial well-being of SMEs.
Insurance is designed to protect against the unknown – the key is to identify how much risk you are willing to undertake. Consider these solutions and discuss them with a professional planner who can help you discern what’s right for you and your business.
Keyman Insurance
- Identify the Keyman in the company
- Describe how the Keyman contributes to your company
- How will the company be affected upon the demise of the Keyman
- Estimate the loss of profit arising from the demise of the Keyman
Credit Protection
- Identify the Guarantor
- Describe the effect of the Guarantor’s death to the company and family
- What is the cash flow that needs to be generated
- Determine the sum assured required to protect the Guarantor
Deferred Compensation (for Key Employee)
- Identify the Key Employee
- Describe how the Key Employee contributes to the profitability of the company
- What are the benefits of retaining the Key Employee
- Determine the deferred compensation required to retain the Key Employee
Deferred Compensation (for Owner)
- Identify the Owner
- Describe the duties and income of the Owner
- What are the income loss borne by the Owner or the replacement of Retained Profit
- Determine the deferred compensation required to compensate the Owner
Business Succession
- Identify the Owner(s)
- Describe the effect of the Owner(s) death on the continuation of the company
- Assess the value of the company
- Determine the sum assured required to provide fair value to the estate
The benefits of business insurance are many; including continued operation and repayment of loans, reduced turnover of key employees and smooth transfer of shares. It can provide security for creditors and is also instrumental in attracting and retaining excellent employees.
Put simply; BUSINESS INSURANCE IS A MUST FOR EVERY BUSINESS!
Find out more when you join us at our upcoming Business Insurance Seminar, happening on Monday 16 February 2017. Our Principal Consultant Mr Stephen Chew will be speaking at this event and sharing his insights and knowledge gained from more than three decades in this industry.
Business Insurance Seminar:
Date: 16 February 2017, Thursday
Time: 6:30pm onwards
Venue: Sheraton Towers Singapore
Enjoy an indulgent 8-course dinner!
Admission fee of $30 applies.
Please register early to secure your seats. Available at a first come first serve basis.
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