4 Most Essential Business Insurance Covers
2017-12-08 17:00:00 UTC
A Business involves the livelihood of multiple stakeholders, and insuring the business to ensure continuity is very important. Here are the top 4 types of covers that every business needs to have…
Nothing in life is certain, and this forms the basis of insurance as a concept. When you run a business, the uncertain includes things that can affect your business operations, which can have far reaching consequences on the financial well being of multiple stakeholders. Natural disasters, storms, burglary, malicious damage and even terrorism are just some factors that can wreak havoc on your professional life.
Take time to do a business insurance check-up and make sure the unexpected does not stop your business in its tracks. There are some basic types of business insurance that are essential to your operations. Read on to find out the 4 most essential types of business insurance.
1. Fire Insurance
A business property insurance policy, (also known as a Standard Fire and special perils policy, or Fire and allied perils policy) pays for damages to your business property resulting from a covered loss. The policy not only protects your place of business(the building) but also your contents including office furniture, computers, your business inventory and other items essential to your business operations.
Many Fire insurance policies also provide for expenses for protecting your business from further damage after a loss such as a fire (including such things like debris removal) and the money needed to keep operating your business until the damage from the loss is repaired. Some of these extensions include:
Burglary is when objects are stolen after someone breaks into your premises, while theft involves no breaking or forcible entry.
While your machinery is protected from fire, lightning, storm, flooding etc. by the main policy, other reasons for breakdown(NOT INCLUDING standard wear and tear) are not covered. If you have machinery crucial to your operations, insuring them is a necessity.
When you insure contents of a business, these contents cannot include money/jewelry/precious stones, etc. However, a business will have cash in the registry, office safe, etc. If your business has cash, then this is an extension made just for you. You have to specify how much money there will be at any time in the safe, at the counter, and in transit, and the money insurance policy extension covers you for that as well.
Covers damage to your plate glass fittings, such as your shop front etc. A fire policy covers your glass fittings from the standard perils, but if your shopfront is made of glass, it could get damaged accidentally. Same goes for your signage. Recommended if you have expensive glass/signage fittings.
Loss of Profits
An important cover. If you make a fire insurance claim on your business, chances are you will take some time to get the business up and running back again. This downtime will cause a loss to your business, and this policy covers you when that happens.
2. Liability Insurance
As a business owner, you can be sued by others for any damage resulting from negligence of your business services that cause harm to others such as a defective product, or services. Liability insurance pays for your damages and legal expenses if you are sued(up to the sum insured set in the policy). Other damages, such as medical fees of others who are harmed by your business, are generally covered as well. There are many types of liability products, the main ones are given below:
If your business causes damages to the public due to its actions, then you are liable for that damage and can be sued. Public liability covers you in this case.
Errors and Omissions, aka Professional Indemnity policy
If your business is involved in professional services including giving professional advice, making recommendations, designing products, etc.; you are subject to being sued if you give faulty advice or make the wrong recommendation that results in harm to others. An errors and omissions policy will protect you from these errors in judgment and pay for legal expenses up to the policy limits. This product is generally what is tailored to specific occupations and offered as malpractice insurance.
Directors and Officers Liability Insurance
A Directors and Officers Insurance policy protects you as a director or officer of the company if your actions negatively affect the company’s profitability or if the company is sued because of your actions. The policy will pay for legal damages and fees.
Cyber Liability Insurance
In an age where every business has a presence online, your site is always at risk of attack. If you have customers who interact with you online, and you store any of their data or private information on a computer or server, you are legally liable for protection of this personal information. Cybersecurity insurance protects business owners from legal liability resulting from this type of breach.
A general liability policy for your business may contain exclusions for pollution and leave you unprotected against pollution-related losses. The most obvious exclusions for liability policy is wilful negligence, wrongdoing or criminal intent/activities. If you want advice on what covers your business needs, contact us for a free consultation session!
3. Group Insurance Covers
Any business is only as good as its employees. When you have people working for you, it is important to ensure their well being, and that their interests are protected. It is also important to ensure that the business does not suffer due to criminal activity by any of your employees. Group covers allow you to do just that.
Group Health Insurance(or Mediclaim policy)
This policy provides health insurance to your employees, covering their costs in case they are hospitalized. Group health covers often offer benefits that individual covers don’t(Pre-existing conditions covered immediately) and better rates per person.
Many companies choose to insure all their employees, and allow employees to insure their families as well(cost of insuring family is borne by employee). Perilwise does a full analysis of your employees, and provides comprehensive quotes that get you the best covers, at the best prices. Reach out to us for a quote here.
Workman’s Compensation Insurance
A workers compensation policy will pay for medical care and lost wages for employees who are injured on the job. The coverage pays damages regardless of who is at fault in the accident. If the employee dies, the policy will pay compensation benefits to the employee’s family. If you have employ shop floor workers, or have employees from an organized union, then in many cases you will be required to take Workmen’s Compensation Insurance.
Group Life Insurance
This insurance product is similar to health insurance, except this policy covers the life of your employees. Many companies take life insurance for their executives, also called Keyman Insurance. If you want to get a quote, reach out to perilwise here.
4. Commercial Vehicle Insurance
Any vehicle that you use in the operation of your business should be insured, as per Govt. of India mandate. Commercial Vehicles(especially goods carrying vehicles, also have a Fitness Certificate(FC) along with Registration Certificate(RC). Both these certificates must be up to date, and the FC details are needed on your commercial motor policy. You can customize a commercial auto insurance policy to fit your specific needs such as paying to replace a vehicle that is involved in an accident, etc. Commercial motor vehicles are also more likely to get claims, statistically, so it is always advisable to keep your insurance up to date.
When it comes to buying insurance, customizability, trust and efficiency are key. You want to be able to select only the covers you need, you need someone who will inform you of the pro’s and con’s and the possible pitfalls of every cover, and you want it done in a way that doesn’t involve unnecessary waste of time or energy. With Perilwise, you can buy Fire insurance online! Just enter your details, select the cover you need, have a call with our expert who will guide you through the process, and select your insurer!
Don’t wait until you suffer a loss to think about buying the proper business insurance coverage. These are not the only types of business insurance you may need. Set up an appointment with a business insurance professional to review your business insurance coverage and make sure your business’ assets are protected from life’s unexpected events.