Business Insurance

Business insurance coverage protects businesses from losses due to events that may occur during the normal course of business. There are many types of insurance for businesses including coverage for property damage, legal liability and employee-related risks.

What is Business Insurance?

Risk is a part and parcel of a business and is unavoidable. However certain risks which a business faces can be avoided by insuring your business called Business Insurance. You pay a premium and insure your business for a sum of money called Sum Assured. Business insurance covers fire and allied perils, loss of company equipment due to theft, third party liability if your business causes damage to public property and a professional indemnity cover.


Why Business Insurance?

  • You invest a lot of money in a business. You want to concentrate only on making a profit. You have uncertainty in the business environment which can affect your business. There is nothing you can do about these changes in the business environment. A business also faces risk to its location due to fire, flood or a natural calamity. This is true mainly for a manufacturing unit. Your business might face risk from theft of data by your employees.
  • Maximum sum insured depends upon the insurer. Based on your income, some insurers offer 60-100 times your monthly income. Others offer 8 to 10 times your yearly income as a sum insured.
  • You would have to pay a lot of money in compensation to your employees injured on duty.
  • The risk due to this uncertainly can be avoided by availing business insurance.


Why buy Business Insurance?

Protection from fire

Compensation available to the location of the business, furniture and also costly office equipment if destroyed in a fire.

Lifelong Compensation to workers

Your workers is compensated, if they suffer on the job injuries. Workers compensation is compulsory in India.

Protection from theft

Your business is compensated from any theft, burglary or robbery on the business premises.

Professional Indemnity

Compensation to clients and legal fees taken care of, if errors, omissions or negligence by the business, results in a loss to the client.


Types of Business Insurance

Property Insurance

Protects against damage to business location. It can also insure the property of others in your control when the loss occurs. Property insurance can be for a specific risk. For example, a fire insurance policy insures only against a fire loss to the location. A cyclone is not a fire and therefore, that loss would not be covered. The insured location may be owned, leased or rented.

Causality Insurance

Protects against damage to business location. It can also insure the property of others in your control when the loss occurs. Property insurance can be for a specific risk. For example, a fire insurance policy insures only against a fire loss to the location. A cyclone is not a fire and therefore, that loss would not be covered. The insured location may be owned, leased or rented.

Liability insurance

Liability insurance insures against liability legally imposed upon your business because of the negligence of the business or its employees. Put in another way, it protects your business when the business is sued for negligence.

Worker compensation

You will need to insure your employees against on-the-job injuries. Most states in India have put into place some form of worker’s compensation system.
Worker’s compensation is a system where the employee is not allowed, by statue, to sue their employer for on-the-job injuries; but, in return, the employer must participate in a system that provides nearly automatic payment to the employee in case of injury for medical bills and damages.
There are many options for worker’s compensation coverage.
Some states allow an employer to opt-out of the system if the employer is self insured, some run the system through private insurers while others use state agencies.

Business interruption insurance

Protect against loss or damage to cash flow or profit caused by business being unable to operate because of interruption.
The easiest example is to think about a critical piece of machinery being struck by lightning. The repairs to the machine may be covered by other coverage such as property or casualty insurance.

Commercial Vehicle Insurance

Your personal automobile policy does not cover vehicles used by your business. If your business uses vehicles or anything that is required to be titled by your state, then you need a commercial auto policy.
Commercial auto coverage insures against property damage to vehicles and damage caused to others by those vehicles.
Health Insurance to be competitive, most business need to offer their workers health insurance. This insurance offers a health coverage benefit to your employees.
Life and Disability Insurance and disability insurance protects the business against the death or disability of key employees. For example, one partner carries a life insurance policy naming the partnership as a beneficiary. If that partner dies, and the business has planned properly, the proceeds of the policy can be used by the business to buy out the share of the decedent’s partnership interest from the estate.
Other Insurance or Scripted policies, it could very well be that your business is so unique to have need for coverage that is a mixture of some of the coverage listed above or something written specifically for your particular risk. Examples of such scripted insurance are that of some actresses, actors, or sports stars that have had legs insured at some point in their careers.