64. Does My Company Need Public Liability Insurance

Does My Company Need Public Liability Insurance?

The many available business insurances work by offering protection to the business owner, the employees and the business, as a whole. For anyone who has just embarked on the path of setting up a business, choosing the right business insurance can be a confusing task. Business insurance can be classified into two depending on their necessity: Mandatory business insurance and optional insurance.

Public liability Insurance (PIL) is a type of optional insurance which offers protection against an injury incurred to a member of the public or their property in the business premises. The protection also extends to the client site and in public domains, where you work.

Who Needs Public Liability Insurance?

In general, since Public liability Insurance Singapore is optional, there are two scenarios which demand the need of PIL:

1.Companies Which are at High Risk of Exposure

These companies witness high rate of footfall every day. Such businesses include cafes, salons, builders, shops and related establishments. A hairdresser can be sued when a client receives a second degree burn with hot wax. If there is a lawsuit filed under these circumstances and the business lacks public liability insurance, the damages caused can cripple the profits. Similarly, in a cafe, a customer can slip and hurt themselves. As the damage is inflicted in the client’s property, compensation is their responsibility. If you’re lucky, compensation will be a meager sum, but in most cases, it runs up to millions of SGD. Insurance companies offer PLI starting from 1 Million SGD coverage. You can choose for a higher coverage depending on the scale of the business.

2.Clients Who Demand For a Proof of Cover

In few cases, there are client who ask for proof of cover before negotiating the terms of the business allegiance. Contracts with the government or public’s involvement generally require a PIL.

PIL can be a life saver even in the situation of a private party. public liability insurance singapore can save your business from shelling out payments for medical mills, compensation claims and legal fees if an individual suffers from injury at your party. If the venue is at a famous tourist site, PIL will additionally cover damages caused to the venue. To help decide the amount of coverage your business requires, get in touch with a professional.

The Role of Performance Bonds in Construction Projects

In Singapore, performance bonds are a requirement in construction projects. Performance bonds protect project owners from monetary loss due to incomplete or failed projects where the contractor is at fault. They are usually provided by insurance companies or banks and applied for by contractors (in favour of the project owner) who need to furnish them as part of their bid for a project. The security provided by performance bonds need not only be for the completion of a project but also in other situations like securing advance payments to the contractor or the tender security deposit submitted at the time of the tender. However, performance bonds are mostly used to secure the performance of the contractor’s work on the project.

Types of Performance Bonds

There are broadly two types of performance bonds – ‘conditional’ and ‘on demand’(or ‘unconditional’).

1) Conditional performance bond – in this case, the insurer is required to pay only if the contractor defaults on the underlying construction contract.

2) On demand or unconditional performance bond – the insurer is required to pay the amount specified in the bond without having to prove that the contractor’s breach of obligations as per the underlying construction contract. The insurer can only refuse to pay if the claim made is fraudulent.

Uses of performance bonds

Performance bonds are most widely used in construction and development projects. Project owners require contractors to be accountable for the quality of work that they do, so performance bonds ensure that contractors deliver on what they promised under the contractual agreement. Performance bonds are provided by insurance companies or banks to a contractor in favour of the project owner. In case a contractor fails to deliver on contractual agreements, be in in terms of quality of work, budget or deadlines, a performance bond ensures that the project can carry on and be completed. When a contractor defaults, the insurer pays out an agreed sum of money to the project owner or arranges for a new contractor while covering all the expenses for that. The insurer will then recover their expenses from the contractor who defaulted since the performance bond was issued to that contractor. Performance bonds are widely used because project owners want to secure the completion of their project(s) without having to incur any additional costs due to failure of the contractor to fulfil their obligations under contract.

Workplace Safety Procedures in Singapore’s Construction Industry

Construction is a key sector in Singapore and is poised to grow remarkably in the next few decades. It also recruits a large number of foreign workers. Despite the availability of mandatory work injury compensation insurance , ensuring worker safety is of paramount importance because of the importance of this sector in driving economic growth. The rest of this article will describe the different procedures taken by the Singapore government to reduce the risks involved in the workplace.

Falls from Heights

Falls from heights are responsible for half the workplace fatalities in Singapore. The National Work at Heights Safety Taskforce was established in 2009 to develop effective procedures to reduce the number of falls from heights. Several recommendations have been suggested by this taskforce over the years. They are listed below.

* The first step involves making a fall prevention plan and providing practical assistance to companies that need the assistance in implementing the safety procedures.

* The second step involves educating companies about the advantages of safety while working at heights.

* The third step is to certify and recognise companies that successfully implement the safety norms.

* The final step involves framing the right legislation and establishing an enforcement wing to regulate companies and ensure that there are no violations of the regulations.

Noise-Induced Deafness

Owing to the long term exposure to excessive noise at the workplace, Noise-Induced Deafness, a condition that involves a permanent loss of hearing, can occur in older workers. The Singapore government had established the Noise-Induced Deafness Prevention Programme in 2007 to deal with this issue. Legally, it is mandatory for all companies to conduct a risk assessment to check if there is a noise hazard at the workplace. The risk assessment has to follow Workplace Safety and Health (WSH) guidelines. If there is a noise hazard at the workplace, all employees experiencing the noise hazard should undergo annual medical examinations and the results of the examinations should be submitted to the Ministry of Manpower (MOM). A Hearing Conservation Programme(HCP) is implemented to reduce the damage caused by excessive noise.

Confined Spaces

A confined space is an area with minimum access to the outside world. Owing to the lack of natural ventilation, workers can experience a lack of oxygen and in the event of a fire or explosion, escape is difficult. A few examples of confined spaces are tanks, manholes and pipes. In Singapore, there is legislation that makes it mandatory that the following steps are followed.

* Identification of all confined spaces.

* Safe entry and exit points to and from the confined space.

* Sufficient lighting and ventilation in the confined space.

* Proper evaluation of the workers entering the confined space.

What Can Reduce The Premiums Of Workmen Compensation?

Workers compensation or workmen compensation is useful in serving two main purposes. All the injured workers are assured proper medical care along with a certain amount of compensation for a certain portion of the income they tend to lose, as they cannot return to work for a period of time until recovered. The second purpose is to protect the employers from going through lawsuits by any workers who are injured or impaired due to the nature of work or the risks prone while working on it.

Reduce the premiums this way – Points to Employers

Mange the risks in the right way – It is always suggested to hire a manager for the management of risk, loss control and to settle the compensation of the workers. This kind of team helps in conducting programs that ensures the safety of the workers and dealing with sudden accidents. A few companies identified the most accident-prone workplaces and applied all the safety measures, which consistently reduced the injuries and compensations to 59% over a period of time.

Know the savings available in the state – Certain state government rules and laws of the workmen compensation deals with merit credits. For instance, if a company is ensuring the responsibility of the workers safety and compensates with the required benefits in case of accidents and on-the-job injuries. The insurer gives premium credits if there is no complaint of any risk happening over a period of time and reduces the premium payment from 5% to a maximum of 15%.

Correctly figured premium – Always check if the company and the related entity is placed in the right category of the industry to get the compensation and benefits of the workers. A check needs to be made on the login and logout time of workers, overtime work, hence ensuring their payroll is managed accurately.

Increase the deductibles – Some states raise an option of medical deductibles in the compensation given to workers. With this, the employers become more conscious on providing the necessary safe environment to work in, with the least risk of accidents and injuries.

Try avoiding assigned risk – Always check with other agents and acquaintances on various group insurance programs and premiums, which can evidently reduce the costs of claims.

Right coordination of disability programs – This is not available with every insurer or state laws. It purely depends on the interest of the employer with the type of business they deal in. Certain companies take a program that coordinates both benefits and compensation along with the care of employee’s safety. This comes as an advantage when taking on a mass of workers and over a long period of time.

There Are Many Types Of Insurance – Check Them

In general, many people think these agents or brokers from insurance companies have no work. They keep calling to suggest this policy or that. But, why is insurance important?

In daily chores and day to day life, every human or business process is prone to face many challenges. For instance, the threat of life, home, health, business, and auto, marine, and so on. Insurance cannot completely repay the loss that has happened. Yet, chances are one can still be able to move on with the financial aid made, compensation given or even a chance to get up every time someone falls down.

Different types

There are many types of insurance. Below are a few of many insurances discussed for an idea to all those who are in a queue to take a policy. Check them out.

Life – It is truly an assurance to all those loved ones if an individual opts for this insurance. It helps the family to manage their financial journey the same way even in the absence of their beloved. That money or fund they receive after the demise of a family member can be of help to the older parents, spouse, kids and, most importantly, the dreams of all the people who are left behind to achieve things.

Health – The older generation did not have the knowledge of taking a health insurance. All they thought about was the life insurance that covers the financial assistance of the family. But, more than those funds, the family needs you. So, paying medical premium can always decrease those risks in case of healthcare that is expensive. It also helps in assisting the un-planned health circumstances that occur to a person. Although, it does not pay the entire amount, it lightens the burden.

Auto – Drive home all the happiness in the world, not the bad ones. So, take care of the insurance first before purchasing a car. Keep that thought in mind, because travelling itself has an adventure hidden in it and no one knows when a turn is signalled. So, car insurance ensures the safety of the vehicle in case of damages by accident, or loss due to natural calamities like floods and in other cases, the theft.

House – Every moment that makes memories is nothing and nowhere than home sweet home. So, as it shelters you from the outside world, shelter it from being prone to any damage. Home insurance covers the claims and compensates in case of damage due to accident, short circuit, fire and other losses that possibly can happen.

Marine – Any business needs to do some kind of trade. When a transport of goods is happening through marine, make sure there is a marine insurance taken before sending the goods to destination.