As homeowner’s policies don’t cover businesses like commercial property insurance, it is important to take additional insurance. This will cover equipment and inventory in the case of home-run businesses. This is especially important for entrepreneurs starting out small from home.
Business Interruption Insurance
In the case of an interruption of regular work due to some catastrophe or accident, it is necessary to have the loss covered. This insurance is for businesses that operate from a fixed physical location like a store. Lost income due to unexpected occurrences is compensated by this kind of policy.
Professional Liability Insurance
Negligence claims can arise as a direct result of failure to perform duty or from irreversible mistakes which leads to damage. A business or organisation can cover this type of claim under Professional Liability Insurance or Errors and Omission (E&O) Insurance. Since each industry differs when it comes to the nature of work involved, customised policies address individual areas of concern.
Product Liability Insurance
Companies that manufacture products have to ensure they have purchased the product liability insurance with coverage tailor-made for specific types of products. This is because lawsuits can often be filed against the owner or company for damages caused by one of its products, even if every measure is taken to ensure safety of the product. PLI covers such claims and costs incurred by faulty products.
Commercial Auto Insurance
Company vehicles should be insured as it can result in a liability claim in case of an accident. Companies should insure against third-party injury but Commercial Auto Insurance cover damages to the vehicle as well. It also covers vehicles used by delivery personnel carrying goods and offering services for a fee.
Related Read: Key insurance services that we commonly provide in the top Asian jurisdictions
General Liability Insurance
Every business should take this insurance as it provides the defense and covers damages in case a product, employee or service caused or is alleged to have caused some harm or injury to a third party.
Business Owner’s Policy
A business owner’s policy (BOP) includes the different types of insurance a business owner needs. Business Interruption Insurance, Property Insurance, Vehicle Coverage, Liability Insurance and Crime Insurance are all included in it. According to specific business needs, you can customise your BOP. It is better to take a BOP bundle as it less costly compared to individual coverages.
This insurance is for those who rent their property for commercial or private use. It protects against damage to physical property, its contents or personal injury within a property.
Personal Automobile Insurance
Auto Insurance covers all kinds of road vehicles and protects against physical damage and bodily injury as well as any liability arising due to an accident.Insurance also includes for your car against vehicle repairs and third-party damage.
Some companies keep non-public information or sensitive data in computers, servers or paper files, pertaining to employees or clients. The loss of such data can result in a data breach and the company can find itself named in a lawsuit. This type of insurance protects against damages or costs incurred due to the data breach.
Directors and Officers Insurance
The directors and officers of a company can find themselves in a lawsuit if their actions or decisions have affected the company’s profitability. If they are caught in such a legal situation, the loss or damages are covered by Directors and Officers Insurance.
Some other types of corporate insurances are:
•Trade Credit Insurance
•Marine Cargo Insurance
Corporate Insurance for employees can also include Keyman Insurance, which protects against the sudden death or illness/disability of a key person in the business and Golden Handcuff Gratuity, which is a reward for directors or staffs for life-long service and loyalty to the company. There is also the Employee Medical Insurance which covers an employee’s medical or hospital charges.
It is of utmost importance to protect your business and your position as the business owner should unforeseen events happen to the business. These events can destroy your business operation and you might find yourself scrambling to cover the loss if you don’t have insurance. That is why it is important to discuss with an insurer and have your business covered with Insurance Policies.