As the festival of lights, Diwali approaches, the entire country is lit up with vibrant colours, bustling markets, and a surge of seasonal businesses catering to the festive crowd. From online to offline, there is a festive vibe everywhere. From the large shops offering huge discounts and exciting offers to small stalls selling festive decors and traditional sweets, it is the time when seasonal businesses in India flourish. However, with the excitement of high sales also comes the challenge of managing risks, which is where insurance can play a crucial role.
For seasonal businesses, having bundled business insurance policies can provide comprehensive protection while saving on costs. Business insurance combines general liability, business interruption cover, and property insurance into a single, cost-effective package. Bundled business insurance policies are an ideal choice for business owners who seek peace of mind during the busy festive season. Whether it is protecting the inventory or safeguarding the shop from unforeseen events, a bundled insurance policy is a smart financial move for seasonal business owners.
Tips to Avail Bundled Business Insurance
Here are some practical tips for seasonal businesses in India, to save on insurance costs by bundling their insurance policies:
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Opt for a business owners’ policy insurance
A tailored package of business owners’ policy insurance that combines property insurance, commercial general liability, and business interruption insurance in one package is important. Customised insurance packages are relatively cheaper than purchasing each policy separately. This can be particularly useful for seasonal businesses with temporary stores, and inventory.
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Customise coverage based on seasonal needs
Seasonal businesses may not require year-round coverage as they operate for a limited time. Work with the insurer of your choice to customise the policy cover and duration to match the nature of your business, so that you can obtain coverage at a cost-effective rate for a limited time.
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Assess the value of inventory
Assess the value of your inventory and assets accurately to avail adequate insurance. Over-insuring can add unnecessary costs.
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Leverage discounts
Many insurance providers offer discounts when you bundle multiple business insurance policies together. You can get maximum benefits at a cost-effective price by grouping coverage in one package.
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Go for higher deductibles
A higher deductible often results in lower premiums. If your seasonal business in India has the financial flexibility to cover smaller claims, consider increasing your deductibles to reduce overall insurance costs.
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Consider cyber insurance for online business
If your seasonal business operates online, bundling cyber insurance in your tailored business insurance package can save you from paying high separate premiums. With more customers shopping online during the wedding or festive season, cyber protection is essential to prevent data breaches.
Bundling insurance policies and tailoring the coverage as per your specific need can protect your venture without overspending unnecessarily.
Here are some examples of seasonal businesses in India that see heightened activity during specific times of the year and the coverage they need:
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Diwali fireworks and decor shops:
During Diwali, businesses selling decor items, fireworks, earthen lamps, rangoli materials and other Diwali seasonal businesses thrive. These temporary shops pop up in markets and on street corners to cater to the high demand for festive goods. Fire insurance and liability insurance coverages are important for these businesses.
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Holi colours and items:
During Holi, vendors selling colours, water guns, and festive accessories see a boost in sales. Many businesses set up temporary stalls in markets specifically for Holi items. Product liability insurance and property insurance are important insurance for these businesses.
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Christmas decor business:
During December, businesses selling Christmas trees, decor items, and gifts see a surge in sales. With the growing trend of celebrating Christmas across all demographics in India, these businesses need to have financial protection to cover all risks. They can combine General liability insurance, product liability insurance, and property insurance in a bundled package.
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Wedding-related services:
The wedding season in India, typically starting from November to May, brings a surge in seasonal businesses such as caterers, wedding planners, decorators, florists, and bridal boutiques. They can bundle professional liability insurance, business interruption insurance and commercial general liability insurance in a package.
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Winter clothing business:
Seasonal clothing businesses like woollen sweaters, jackets, and shawls thrive during the winter months, particularly in North India where temperatures drop significantly.
Similarly, other seasons like summer, and rainy, and festivals like Rakhi and Makara Sankranti also make way for many seasonal businesses.
Conclusion
To sum up, seasonal businesses in India rely heavily on festival timings or climatic changes and tend to ramp up their operations during specific months. Hence, they should consider opting for cost-effective insurance solutions by bundling various insurance covers in a single package to safeguard the business.
