General Insurance: A Need of the Hour for Companies

Most companies are interested in insurance policies which will help protect them from future perils and mishaps. With increasing number of risks to businesses these days, companies more than ever before are in need of a good insurance policy.  However when it comes down to choosing the best policy they find the process difficult and complicated. With various kinds of policies available today; choosing the right type of policy requires some sort of expert advice and research.

Insurance is vital for any business

Employing an individual makes the employers legally liable towards that individual in case of any accident or injury at work. In fact a company opting for an insurance policy confirms that the company is interested in the well being, health and safety of its employees and understands its responsibility; adding credibility to the image of the company.

The chances of a mishap may seem low to any business however it is always better to protect oneself from any sort of peril; especially in today’s competitive and fast paced environment. General insurance is defined as any insurance that is not life insurance. There are various forms of general insurance available for a company, and with the help of a general insurance broker the right policy can be chosen for a particular company.

Here are few insurance policies a company can consider; depending on the type of liability cover they require.

Types of insurance a company may need

General Liability insurance

Liability insurance is the most common type of insurance, as anyone who hires some kind of staff would require this type of insurance. The policy provides cover to a company’s owner, employees or  products or services who may have caused or are supposed to have caused injury or property damage to a third party. Most companies require some sort of liability insurance; hence consulting a general insurance broker would be the best way to understand the level of liability insurance any company needs.

Motor insurance

Generally, drivers are aware that motor insurance is a legal requirement; however, most are mistaken that a current insurance for a vehicle includes being used for work related activities. However for this purpose one needs to get a policy which includes utilizing the vehicle for business purpose.

In addition if an employee is using their own vehicle for work activities other than just travelling to work; it is essential that the company ensures that the employee is fully covered.

Professional liability insurance

This insurance policy is also known as errors and omissions (E&O) insurance, it helps covers a business against negligence claims to cover damages that occurs due to errors or non-performance. This type of insurance varies as per the industry and risk profile; like in the case of doctors it is highly critical as they generally have a higher risk profile. Hence the policy is not generic for all and is customized as per the particular business and industry needs.

Worker’s Compensation

This type of insurance provides cover to employees who are injured on the job. Worker’s compensation insurance provides wage replacement and medical treatment, in the event an employee is injured as a result of his work with that business. It is highly important for a business owner to have this sort of a policy as it protects them from legal complications.

Property insurance

This insurance is necessary whether the business owns or has taken the place on lease as it covers all the inventory, equipment , furniture, etc. in case of a fire, storm or theft. This policy does not cover mass destruction happenings such as floods and so on. If the area the company is located is susceptible to any of these types of problems in the future they can consider adding another alternate policy which will look into those predicaments.

Data Breach 

This policy is necessary for companies which store sensitive data or non-public information about employees or clients on their computers, servers or in paper files. As such companies are required to protect the information; in case of any sort of data breach occurring electronically or from a paper file by an employee of the company, will help provide protection to the company against damages and losses at that time.

Which is the right policy?

The above policies show how getting a general insurance policy has become the need of the hour for most companies today. Besides the above types of insurance there are various others like Product liability insurance, Directors and Officers Insurance, Business interruption insurance, etc. that a company may require.

Though an insurance policy may be imperative for some companies; getting the right type of policy is also important to help cover losses appropriately. For example a business interruption policy is particularly needed by companies that require a physical location to do business; like retail stores. Such a policy will help cover against loss caused due to halt of business activities in case of any disastrous event. However while taking the policy the company needs to decide how many years of coverage would be best to take in such an event. Along with such kind of doubts; companies find the huge amount of terminology associated with insurance terms time consuming; hence it would be beneficial for a company to consult a general insurance broker while taking this decision.
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