Must-have Insurances for your F&B Business

First Published: 25 Jan 2021
Last Updated: 21 Mar 2021
Insurance Coverage

We spent the last decade working with F&B owners, and one of the ‘dead costs’ that most talk about is insurance for their business.

So what are the mandatory insurance and their costs which will form part of your set up capital? Let us take a deeper dive into this to shed some light on this for you.

While some may perceive insurance as a ‘dead cost’ mandated by the government or malls, it is in actual fact of your best interest to have this coverage. While we hope that our business will be smooth sailing without any incidents, it is without a doubt best to ensure our financial security to provide for our staff and family in the event of a mishap.

With that, let’s explore the different types of mandatory insurance:

1. Foreign Worker medical insurance

This is a must-have insurance before MOM issues your worker with their appropriate working permit. The minimum insurance coverage is at least S$15,000 per year for both Work Permit Holder and S-Pass holder.

2. Mandatory Work Injury Compensation Insurance

Required by Ministry of Manpower to ensure that the following are covered by the mandatory work injury compensation insurance:
  • All employees doing manual work, regardless of salary level;
  • All employees doing non-manual work, earning a salary of $2,100 or less a month, excluding any overtime payment, bonus payment, annual wage supplement, productivity incentive payment and any allowance;
  • Salary threshold for non-manual employees at $2,600 from 1 April 2021.

3. Public Liability Insurance

This is a requirement which is part of the Tenancy agreement with Landlord requesting for the following:
  • Public liability in joint-named, with waiver of subrogation clause and cross liability clause;
  • Cover for landlord’s fixtures and fitting.

What Are The Costs Involved?

We’ve done the calculations and made it simple for you!

From S$1.46 a day or S$532 a year to provide your business with:

  1. S$50,000 of Property Cover
    Protect your business premise against perils.

  2. $500,000 of Food Poisoning Cover
    Accidents happen, it’s better to be safe.

  3. $500 Daily Cash
    Safeguard your business from loss of income.

  4. Employees on Work Injury Cover
    Mandatory before your workers are issued with permits.
If you’re interested in finding out more, you can head over to our insurance partner at: Insures.Guru and talk to the resident insurance expert, Dominique the Insurance Guy.
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