Money Matters

8 Types of Insurance You Need to Protect Your Business

Business insurance is a type of insurance that helps protect a business’s financial assets, intellectual property, and physical location from an unexpected event that causes significant financial losses. It covers an insured business against any damages or losses caused by natural disasters, theft, vandalism, lawsuits, loss of income, and employee illness, injury, or death.

Why should you cover your business with insurance?

It is essential for small business owners to carefully consider and assess the needs of their business as they have ample financial resources in the event of any loss. If business owner does not feel they can effectively evaluate business risk and the need for insurance coverage, they should work with an experienced, licensed, and reputable insurance agent.

Business insurance protects SMEs against fire, theft, professional liability, general third-party liability, workers’ compensation, medical expenses, and more.

The types of insurance your business really need

There are several options for coverage for businesses. The range your business requires depends on the industry, location, number of employees, and size. Your insurance needs will likely change as your business grows.

1. Liability Insurance Policies

A Liability Insurance company is there to help protect you against any claims that may arise due to damage or injury to your business’s operations, products, or premises. There are many types of liability insurance:

  • General Liability Insurance – A type of insurance that businesses must cover against any legal liability for damages or injuries to any third party, as well as advertising damages and personal injuries, as well as any injuries or damages that occur due to the operations of your business.
  • Public Liability Insurance – Covers you and your business against any loss or damage caused to a third party (i.e., anyone other than you – the insured person or business and the insurance company).
  • Professional Liability Insurance – Protects you or your business against professional negligence, mistakes, or missed claims. It is helpful for architects, engineers, consultants, lawyers, construction designers, medical professionals, and accountants.
  • Management liability – This insurance protects your company’s directors and officers against circumstances that would not usually be covered under a public or general liability policy. It is directed at the company’s managers, directors, and officers, as are accusations of wrongdoing.
  • Contractual Liability – This covers those duties that you and your business would consider entering into a contract of any nature against contractual obligations between you and your business. Such as leases, rental agreements, or other general business agreements. This will cover you for things like financial losses and legal costs.

2. Property Insurance Policies

Property Insurance covers you in case of any damage or theft of your commercial property and its contents, personal or rental business.

  • Buildings Insurance – Buildings insurance plan protects shops, buildings, offices, and other commercial facilities against fires, natural disasters, thefts, and building damage.
  • Consequential Loss (Fire) Insurance – Fire insurance covers the cost of property damage caused by fire. So, if your shop is damaged by fire, this will help cover any loss of business and income you may face due to the damage to your shop.
  • Sign Board Insurance – protects your business against accidental loss or damage to signboards and collectors placed outside and in public places from natural hazards, fire, or theft. Also, the signature plate covers legal liability in case of any third-party damages.
  • Plate Glass Insurance – A type of insurance that will protect your business against any damage or scratches to the large display windows in your commercial premises. Shop windows, glass doors, transparent walls, and more.
  • Theft Insurance – This theft insurance covers you in case of theft of cash, jewelry, and other valuables, as well as any loss or damage that may occur due to the robbery.

3. Money Insurance

It’s there to help you protect your business’ cash and money transactions, including cash, cheques, drafts, and postal orders. You and your business will be covered if your money is stolen, lost, or accidentally damaged while in transit or at a safe or cash counter.

4. Fidelity Guarantee Insurance

This protects you and your business from any loss arising from the dishonest actions of your employees during working hours. Thus, loyalty insurance will protect your business from any financial costs caused by dishonesty, theft, or employee fraud.

5. Electronic Equipment Insurance

This will protect you in the event of any loss or financial damage to your electronic business equipment (this may include system software). This consists of repair or replacement costs, loss or damage to any external data, and increased operating costs when your equipment is out of commission.

6. Commercial Vehicles Insurance

The commercial vehicle insurance policy covers accidents, collisions, natural disasters, fires, etc., to the commercial vehicle and its owner-driver. Will cover damages and losses in such situations.

If your business owns one or more vehicles or involves the use of vehicles such as taxis, this coverage is essential. This type of insurance covers vehicles (taxis, autos, buses, etc.), goods transported by vehicles (trucks, tempos, lorries, etc.), and any special vehicles used for agriculture, mining, or construction.

All businesses must purchase commercial vehicle insurance for their vehicles—for example, auto-rickshaws, taxis, school buses, tractors, commercial cars, and trucks.

7. Worker’s Compensation Insurance

This policy is for employers when they provide compensation to their employees in the event of work-related accidents. It covers workers in the event of illness, bodily injury, disability, or death caused by work-related accidents and helps provide them with the care they need.

In this way, it enables employers to meet the requirements of the Law “On Compensation of Labor” and to defend themselves from the courts.

8. Group Health Insurance Policy

  • Employee Health Insurance – Employee health insurance is a health insurance plan that covers the employees of an organization. Under a policy, a sum of money is paid by the employer. The exact cost is relatively low compared to individual health insurance plans and also benefits employers in tax deductions, thus making it beneficial for both employer and employee.
  • Group COVID–19 Cover – COVID-19 Group Protection – is a health insurance policy that covers employees during the coronavirus pandemic. Provides coverage for any medical expenses incurred during treatment for CoVID-19.

So, if you’re wondering, “what type of business insurance do I need?” if you think so, this policy will give you a good start in protecting the business you’ve worked so hard for!

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