SINGAPORE - Workplace injury is expected to be the top internal risk small and medium enterprises (SMEs) will face in the next 12 months, insurance provider AIG said on Wednesday (June 29).
Claims data from the company shows that SMEs claimed more than $5 million in 2015, with the top three risks arising from workplace injuries (56 per cent), fire or water damage to property (20 per cent), and legal liability (20 per cent).
In 2015, the average claim made by an SME was around $6,000, while the highest claim was $214,000 made by a medical clinic when its water pipe burst and damaged both the clinic and neighbouring retail units.
A particular area of concern is workplace injury, with claims up by 17 per cent compared to 2014.
Over the last three years, work injury claims by the manufacturing industry accounted for 90 per cent of AIG's top claims.
This year, the amount paid for workplace compensation claims is expected to increase by 20 to 30 per cent, AIG said.
Apart from workplace injury, AIG Singapore's head of SME Packages, Mr Krishna Moorthi Sri Ramalu, also warned about the risk of fire damage, which "can cause severe and long-term losses that have a huge financial and reputational impact on the business".