It can also arise due to a bit of a hole in a ship (3)
I believe the answer is:
sos
'it can also arise due to a bit' is the definition.
The definition suggests a singular noun which matches the answer.
'a hole in a ship' is the wordplay.
'a hole' becomes 'O' (O looks like a hole).
'in' is an insertion indicator.
'a ship' becomes 'SS' (prefix in ship names eg SS Great Britain).
'o' put within 'ss' is 'SOS'.
'of' acts as a link.
Can you help me to learn more?
(Other definitions for sos that I've seen before include "urgent appeal" , "Appeal for help" , "Morse Code for help" , "plea" , "Mayday call" .)