Despite more than a third of SMEs have a grim view of the economy, sales, and profitability in the coming year, almost 10% of the smaller SMEs* in Singapore do not carry any insurance to mitigate such risks. And more than half of SMEs are content to operate with only the most basic, mandated levels of insurance. These were some results of a survey of Singapore SMEs by QBE, which also found that their biggest concerns are unfulfilled client payments and business interruptions (BI)-related, such as the loss of key staff, the loss of income due to BI and damage to/loss of inventory.
Smallest firms have no insurance
“As a result, these companies are missing opportunities for obtaining compensation for the initial event, and potentially putting the stability and even the continuity of their business in jeopardy,” said Mr. Karl Hamann, CEO of QBE Insurance Singapore. In the past 12 months, the most frequently encountered risks cited by businesses included: loss of income due to business interruption (24%); business systems and computers hacked (24%); equipment breakdown (23%); legal, regulatory or compliance issues (21%); staff injured while working (20%); and customer or payment fraud over the internet (10%).
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