Business insurance protects you against possible losses in your daily operations. From broken property and lawsuits to risks with your employees, many types of insurance can help you safeguard your business. Since every business operates differently, you must decide on your insurance needs based on the various specific risks that apply to your industry, location, or operations.
In this guide, you will learn about the different types of business insurance policies that can help you prepare for the unforeseen and secure your business against events you may never have been ready for in India.
Business insurance, mainly for new and small business owners, can be quite significant. This insurance secures a business from different threats and damages without a hefty financial burden on the company, including third-party liabilities.
Without insurance, the payment for damages or losses has to be made with personal finances, which can be pricey. Hence, business insurance is essential to avoid such hefty expenses.
Here are the 9 different types of insurance policies that can help you protect your business from various risks:
Liability insurance protects your business against claims arising from damages or injuries linked to your operations, company products, or accidents on your premises.
Different forms of liability insurance policies include:
• General Liability Insurance: General liability insurance protects your business from legal claims that arise from injuries or damages of a third party or from advertisements and personal injuries that your business may cause.
• Public Liability Insurance provides coverage for your business against any loss or damage that occurs to a third party (anyone who is not the business owner, the insurance company, or the policyholder) in your business premises.
• Professional Liability Insurance: Designed for professionals, such as architects, lawyers, engineers, and consultants, this insurance protects against claims of professional negligence, errors, or omissions.
• Management Liability: Protecting your company’s directors and officers, this insurance covers claims that typically fall outside of general or public liability policies, such as allegations of misconduct against senior management.
• Contractual Liability: This coverage applies to liabilities assumed through contracts, like leases or rental agreements, protecting your business from financial losses and legal costs arising from contractual obligations.
This insurance provides financial compensation to employees in case of on-the-job injuries, disabilities, or work-related diseases. Workmen's compensation policy ensures compliance with the Workmen's Compensation Act and protects employers from legal claims related to workplace injuries.
This business insurance policy protects you from losses due to theft or damage to your commercial property and its contents, whether the space is owned or rented:
• Building Insurance: This policy covers shops, offices, and other commercial spaces against risks such as fires, natural disasters, and burglaries.
• Consequential Loss (Fire) Insurance: This insurance compensates for losses due to fire damage that impacts business operations, ensuring revenue loss is covered in the event of property damage.
• Sign Board Insurance: This policy protects sign boards and hoardings from risks like natural disasters, theft, or fire and covers liability for damages if the signboard harms third parties.
• Plate Glass Insurance: If your business has large glass windows, doors, or walls, this insurance will protect you from costs due to breakages or damages.
• Burglary Insurance: This insurance provides coverage against the theft of cash or stock, among other valuables. It covers burglary.
This is a must if you have a business that sells products you have manufactured. This insurance will protect you if your products cause loss or damage, which might make its way to the courts. Product liability insurance covers your claims over damages resulting from your products.
Money insurance protects your enterprise against theft, loss, or accidental damage to cash, cheques, drafts, and postal orders. It also ensures that your business is not exposed to risks connected with financial transactions, including money in transit, kept in safes, or cash counters.
Fidelity Guarantee Insurance will cover you against losses resulting from various acts of employee dishonesty committed during employment or service. During employment, these acts can be through theft or fraud. It protects your business against effects resulting from dishonest activities by employees, such as those committed during employment.
This policy covers electronic equipment used within your business from damage or loss, including costs incurred for repairs or replacement, loss of external data and extra working costs whenever equipment is out of operation. It covers equipment such as computers, servers, and other digital tools vital to the company's activities.
Commercial vehicle insurance covers losses or damages to commercial vehicles, whether due to accidents, natural disasters, or fires. This insurance applies to the business's vehicles, including passenger carriers like taxis and goods carriers like trucks and tempos. It is mandatory for all commercial vehicles, including school buses, vans, tractors, and other speciality vehicles.
This insurance covers employees under a single policy, with the employer bearing the premium. It offers tax benefits for employers and a cost-effective health plan for employees.
Business insurance acts as a critical shield, helping you minimise risks, protect your employees, and reinforce your business’s security against unexpected events. Selecting the right type of business insurance coverage sets a strong foundation for your business’s long-term stability and growth.
