None of us can predict the future. We never know what happens next. Good or bad, we need to deal with what’s thrown at us. If you’re smart enough, you will prepare yourself for the bad things that can possibly happen to you and your business.
Just like you, for many, business is their life. They earn their bread and butter out of it. Their fate is decided by their business. If the business goes down, they go down too. Hence, it is always wise to safeguard your business with the right insurance it needs.
Insurance protects the SMEs from fire, theft and a lot of uncertainties. You can’t afford being uncovered during a disaster that may hugely affect your finances. The coverage your company requires depends on things such as the industry, your location, number of employees, and size. You need to assess your need for policy depending on the potential risks based on the type of environment in which you operate.
Here are 9 Types of Insurance and What it Covers.
General Liability Insurance
This is a basic one every business owner should have. It protects your business from a “general” claims such as liability loss & property damage including bodily injury, lawsuits, investigations and settlements. Whether you operate from a professional space or from your house, you should definitely have this.
Want to BUY this for your business? Check this – https://www.policybazaar.com/commercial-insurance/general-liability-insurance/
Property Damage Insurance
When you’re running a business, your business property, where you sell items/services and store your inventory, is your second home. It all starts and ends there. Any disturbance, major or minor on your business property, can have a negative effect on the daily functioning of your business.
For eg, a fire outbreak will not only damage the building but also the stock and machinery and equipment inside it. This would call upon huge financial losses, interrupt the daily functioning of your business and interrupt your transactions with customers. If your business is not sufficiently insured against property damage, the recovery cost will fall entirely on you. That’s why you need this policy to protect your property.
Want to BUY property damage insurance for your business? Check this – https://www.bajajallianz.com/commercial-insurance/property-insurance
Well, this is a mandatory Buy. Govt of India demands you to have all the vehicle used for your business insured. Nevertheless, if your employees are using their private vehicles, their personal policy will cover them during an accident or other damages.
Want to BUY commercial vehicle policy? Check this – https://www.policybazaar.com/insurance-companies/reliance-general-commercial-vehicle-insurance
4. Employee Policy
The injury or death of your employee during the course of his/her work is dangerous for your business. It is not only about the expenses arising out of injuries or illness to staff but also there is a possibility that the employee’s family can sue you. If their loss is severe, the payment can go beyond your ability to pay, making you bankrupt. For this reason, in most countries, especially abroad, this policy is a mandatory buy.
In case you want to BUY Employee Insurance Policy, check this – https://www.policybazaar.com/health-insurance/group-health-insurance/
5. Legal Liability Insurance
It is not a rare thing to have conflicts with its clients/customers/vendors. Some disputes will become so big that you may want to take it to the court. Or sometimes when you become responsible for someone else’s losses, you may have to compensate the person or entity. Also, in case this goes legal, you have to pay huge legal fees. Without this, the entire legal expense will be on you.
In case you want to BUY this policy, check this – https://www.bajajcapital.com/general-insurance/liability-insurance.aspx
6. Product Liability Insurance
If you’re into manufacturing, this policy is necessary. Your product may cause damage to consumers. In those cases, this comes handy.
In case you want to BUY Product Liability Policy, check this – https://www.bankbazaar.com/miscellaneous-insurance/product-liability-insurance.html
7. Business Interruption Policy
This type of policy is designed for a company that requires a physical location such as retail shops. Sometimes, during a natural disaster or riot, it becomes difficult for your staff to come to work, it will lead to interruptions that brings loss of income. This protects the business against such financial losses due to an interruption of the normal course of your operations.
In case you want to BUY this policy, check this – https://general.futuregenerali.in/commercial-insurance/property-insurance/business-interruption-insurance-details
8. Errors and Omissions Insurance
Sometimes, due to your negligence in providing services, you might gain hatred of your customers who may even deny to pay you. There will be a lack of cash flow which affects the normal functioning of your company.
In case you want to BUY this policy, check this – https://www.magmahdi.com/
9. Customized Insurance:
Some insurance is specific to certain kinds of businesses and is tailor-made for their needs.
In case you want to BUY customized insurance, check this out – https://www.policybazaar.com/
Every Policy comes with a premium and deductible. Premium is the amount you pay for availing the policy benefits while deductible is a pre-decided amount that you agree to pay at the time of claim. Simply put, lower the deductible you pay, the higher your premium will be or vice versa. It is for the owners of small enterprises to carefully take into consideration and assess the needs of their business as they have extensive financial exposure in case of any loss.
Do you have questions? Please comment below.
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