Commercial business is a kind of Insurance that is designed to protect businesses against various risks. It covers the financial loss suffered by the business due to damage to property, injury, illness or death of the employees, public liability for property damage and bodily injury, employer’s liability, etc. Commercial insurance is a broad category under which there are a variety of insurance types that can be taken for different types of risks. Any type of general business risks can be classified under commercial insurance and you can financially protect your business for the same.
Types of Commercial Insurance Policies in India
There are different commercial insurance policies that are suitable for different kind of businesses depending on their size, location, industry, number of employees, exposure to risk, etc. Listed below are all the types of commercial insurance policies that you can take:
If a claim arises out of third party bodily injury or property damage then liability insurance protects the business owner. It covers the legal cost for lawsuits in which the company or policyholder is held responsible along with medical expenses and other related costs as well.
This insurance policy is designed to protect the directors and officers of a company from any personal liabilities that arise out of claims of wrongful acts in their position. These allegations can include breach of duty, misstatements, negligence or errors, etc.
This policy is specifically designed to cover all the losses and damages that can be faced by a small to medium sized shop owner during their course of business. This policy helps the the insured have a peace of mind by providing them a financial protection against damage to the property and other business interests of the policyholder. It also protects the shop owners from the unexpected risks and natural disasters along with coverage of theft, burglary and other risks.
As the name states, a fire insurance policy is specifically designed to cover damage or loss due to outbreak of a fire. With this policy, the insured can claim any expenses incurred in the repair or replacement of damaged property from the insurance provider.
This insurance policy covers loss or damage to the insured property in case of burglary, attempt of burglary, as well as housebreaking. Some insurance providers also offer protection against damage due to a riot strike left or other malicious acts.
An office insurance policy is a complete comprehensive package to insure one’s business premises. This insurance policy offers coverage in case of fire, burglary, property damage, breakdown of machinery, etc. Hence any that a business might face in their operations are covered in a single policy.
Cargo insurance is an insurance policy used in protecting shipments from physical damage, loss or theft. In fact, insuring cargo ensures that the value of goods are protected against potential losses which may occur during air, sea or land transportation. This way even if any financial loss does take place, then the insured will get compensation for it.
The transit of goods from its origin to its destination is exposed to various risks. The domestic movement or importing and exporting of goods can expose you to massive financial losses in case shipments get damaged in transit or lost. It is crucial to protect these goods from the various possible mishaps, enabling you to run your trade/business smoothly. All risks like fire, natural disaster, overturning or derailment, etc. are covered in this policy.
Cyber-insurance is a specially designed insurance product intended to protect businesses, and individuals providing services for such businesses, from Internet-based risks, and more generally from risks relating to information technology infrastructure, information privacy, information governance liability, and any other related activities. Data destruction, extortion, theft, hacking, denial of service attacks, errors and omissions, failure to safeguard data, or defamation, etc. are all covered under a cyber insurance policy.
Business insurance helps an enterprise to protect its financial assets, intellectual rights, and physical property from any unforeseen risks causing huge financial losses. It financially supports the business against any loss or damage that arises out of natural disasters, thefts, vandalism, income loss, third-party claims, employee illness, bodily injury, or death.
General Liability Insurance
General liability insurance financially covers the insured against any legal payouts that they are liable or sued for. If the insured or their business falls victim to being legally liable for any payment because of simple slip accidents, defamation claims, personal injuries, etc., then this insurance can help them tremendously. Usually, insurance is provided for both legal and financial liabilities.
Public liability insurance offers financial compensation to the business in case of any loss incurred due to third-party liabilities. Lawsuits and claims of property damage, bodily injury, and many other cases made against the business are covered under a Public Liability Insurance Policy. This insurance covers both public liability as well as product liability under one policy.
Marine insurance, as the name states, is a type of insurance extended for marine purposes where the insurance provider offers financial compensation in case of any loss or damage to the insured property. This includes loss or damage due to fire, sinking, toppling, etc.
Construction’s All Risk Insurance Policy provides comprehensive financial compensation against damage or loss with respect to construction plant, machinery, and equipment, contract work, third-party liabilities, etc. This policy is not only suitable for contractors but also architects, construction engineers, and investors.
An Erection All Risk Insurance Policy covers loss or damage in projects that involve erecting or installing a plant, equipment, or machinery. Such projects involve a lot of risk of physical damage or loss. Because of this, your business and construction operations might be put on hold and you will also face a high financial burden to recover the losses. Hence you can get a financial reimbursement in case of any mishaps from the storage till the equipment testing stage.
This policy is primarily designed for covering a multitude of plants and machinery that are used on construction sites. This policy covers all the movable equipment and machines against the risk of damage or loss caused due to a mishap.
Repair or replacement cost is paid for the machinery according to the extent of damage so that the work can be resumed as soon as possible.
This policy is a type of commercial insurance policy taken by employers. This is because the employer is legally liable to provide financial compensation to their workmen or their beneficiaries in case of an accident or their death. This liability arises because the employer is supposed to meet the obligations under the Workmen Compensation Act of 1923. Hence any bodily harm or death of the employee due to or during the course of work will be covered.
Comprehensive General Liability Insurance
Comprehensive general liability insurance refers to a business insurance policy that provides coverage for customer injuries, customer property damage, and lawsuits related to both. This covers legal expenses, medical expenses, settlement costs and other related expenses as well.