Commercial Insurance

Those who have the appetite for taking risks are the ones who are successful business owners.  While risk taking can improve your business propositions, it doesn’t hurt to be a little cautious and   take up a commercial insurance to protect your venture from potential losses, theft, and damage of property or any other form of liability.  The terms of your commercial insurance varies, which largely depend upon the scale and type of business.  However, no matter how big or small is your venture commercial insurance is extremely relevant for your business. In India there are different types of commercial insurances that may be divided into the following segments:

  • Jewellers Block Policy
  • Bankers Indemnity Policy
  • Shopkeeper’s Policy
  • Marine Cargo Policy
  • Plate Glass Insurance
  • Special Contingency Policy
  • Neon Sign Insurance
  • Multi- Peril Policy for L.P.G. Dealers
  • Fidelity Guarantee Insurance Policy
  • Marine Hull Policy
  • Aviation Insurance

What kind of commercial insurance plan do you need?

There are different packages that extends inclusive coverage against perils such as fire, accident, theft etc. These are comprehensive plans that will cover most of your assets.  Additionally, there are also exclusive policies which can be customized as per the requirement of the business owner. For example, if your business is spread across various locations, a single cover will is applicable to each entity of your venture.  Therefore, before you decide upon a commercial insurance quote, ensure that it provides basic cover against all internal and external threats such as:
Fire Accidents
Fire accidents pose immense damage to your business assets. A commercial insurance that provides cover from fire is important for any business but particularly for the manufacturing sector and L.P.G dealers.  It should be noted that these are not standalone policies and also provide protection from natural disasters. Some policies also cover caused from domestic agitation, act of terrorism etc.
While signing up for such an insurance policy, ensure that it covers all the physical assets of your company including office premises, elevators, furniture and in some cases even crucial documents, files and expensive products or storages.
Collateral damages
Unforeseen incidents such as a fire accident not only destroys the physical assets of your enterprise but will also cause business damage by interrupting the operations of your venture.  This is a step ahead commercial insurance plan that your insurer can provide. Such a plan ads one more layer to your insurance cover. When taking up such a plan, ensure that your commercial insurance quote is equivalent to total value of the assets that you wish to cover, in order to procure the replacement cost of the damaged or theft items.
Technology and Data
In a technology driven business ecosystem, it makes absolute sense to include laptops, desktops and servers under your commercial insurance cover. A lot of crucial company data are stored in the electronic devices and if these get damaged in a fire or theft can cause huge business loss. Although, these days a lot of company rely up cloud computing to save the valuable data of their company, SecureNow one of the leading brokerage firm in India says that it is wise to include a separate clause in your policy that provides protection against loss of digitally stored data.
Human Resource Cover
Employees are the asset of your company. There are two aspect of this. First if the workmen compensation act that provide insurance cover towards loss of life to permanent and temporary disability to those employees who work in high risk zones of your enterprise. This is not only legally bindings, but is also mandatory on the humanitarian grounds.
Then there are the elite forces of your enterprise such as the Director, Founder, Chief Operating Office, Sales Head, technology head who are extremely crucial for your business. Upon the demise of any of such insured entities, the insurance company will pay up monetary compensation as per the agreement of the plan. While taking much such a commercial insurance cover, make sure the family members of the employee also benefit from the plan.
In Conclusion-
Commercial Insurance cover is not only benefits larger enterprises, but also small business undertakings.  At the moment, India is witnessing a boom in several start-up enterprises.  In fact in the last one decade, India has witnessed a rise in small business insurance plan due to an increase in competition, especially for the need for survival against big companies and organizations. Most insurance agencies offer a reasonable premium amounts in an attempt to encourage more and more small business insurance to make commercial insurance part of their business plans. Some key areas covered under commercial insurance for small businesses are:

  • Protection of business assets, physical and otherwise.
  • Money spent on travel for the purpose of business development
  • Protection from any kind of debts and borrowing.
  • Loans for starting the business venture
  • All expenses incurred on behalf of business operations
  • Employees compensation /Group Insurance Plans

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