Commercial insurance or business insurance is a type of insurance that covers dangers related to any business. There are different sorts of insurance policies available in the market to help different businesses get money related coverage for different business dangers. It could be insurance for a shop, shopping center, industrial facility, warehouse or a vehicle.
What is Commercial Insurance?
Commercial insurance offers protection to businesses from any unforeseen issues. Some of the most widely recognized insurance policies are shopkeepers’ insurance, warehouse insurance, travel insurance, item and open risk insurance, employee obligation insurance, marine insurance, property insurance and some more. These policies provide a safety net to business owners in case of any problem.
Types of Commercial Insurance
Let us take a gander at some of the types of commercial insurance available in India that can help minimize and handle different dangers related to businesses.
1. Shopkeepers’ Insurance: Shopkeepers’ insurance policy is an ideal choice for retail shopkeepers dealing in grocery, apparels, little restaurants, sweet shop, etc. The comprehensive policy covers all the dangers and contingencies faced by little or moderate sized retailers. It covers the losses related to following issues:
• Fire and Allied Perils
• Burglary and housebreaking
• Machinery breakdown
• Personal accident
2. Travel Insurance: When valuable business products are transported starting with one area then onto the next, for example, from supplier’s processing plant to the retail outlet, you ought to consider travel insurance to cover any loss due to damage or loss of the consignment. The responsibility of taking the travel insurance policy must be determined in the sales contract, and the insurance must be taken well before products leave the supplier’s premises. Travel insurance just applies to the merchandise transported over land. Following are the merchandise which are covered under travel insurance:
• Packaging material
• Manufactured merchandise
• Raw materials
3. Commercial Vehicle Insurance: Vehicle owners who are in the business of shipping passengers or products must take commercial vehicle insurance that covers the commercial vehicle against different types of external damage. Some of the significant features of commercial vehicle insurance are:
• Death or substantial injury caused by the use of the vehicle
• Any damage to the property because of the use of the vehicle
4. Obligation Insurance: This policy offers protection to businesses and people from hazard that they might be held legally and liable for, especially on account of emergency clinics and business owners. For example, a manufacturing plant owner may face an obligation guarantee from the employees who gets electrocuted inside the industrial facility. The employee risk insurance may help in such a circumstance and handle the treatment costs alongside legal expenses, if any arise.
5. Warehouse Insurance: Businesses in which majority of the capacities are dependent and happens in multiple warehouses may consider purchasing a warehouse insurance. It covers common catastrophe, fire and comparative unforeseen circumstances. Moreover, you can get the compensation against human-made risks like theft and thievery.
6. Marine Insurance: When products are shipped to international destinations through the sea, it undergoes several changeovers. It travels by rail, street, water and perhaps aviation routes also. It likewise changes numerous hands before it reaches the last destination. The shipowners take Hull and Machinery insurance to protect the boat’s fundamental structure and machinery. The load owners take marine payload insurance to protect the consignment under travel. The marine policy may cover specific time-frame or the voyage or both. Make sure to strike the correct balance between adequate coverage and reasonable insurance premium to benefit ideal coverage for your payload.
7. Office Package Insurance: This type of insurance protects one’s office and everything under the rooftop, including the infrastructure. It offers protection to the office premises, in case of any damage due to fire, theft, thievery, earthquake, etc. It additionally provides personal accident coverage. One ought to understand all the focuses that are included and excluded in the policy. For instance, the policy does not cover any problem emerging due to illegal movement or war-like circumstance.
Coverage under Commercial Insurance
Different types of commercial insurance offer coverage for different cases and circumstances. Let us understand some types of coverage provided by different insurance companies.
- Home insurance covers the house and the content inside the structure
- Gathering health insurance covers medical expenses during hospitalization
- Risk insurance covers expenses of claims and other damage to person or property due to your business, profession or vehicle
- Travel insurance offers coverage for loss or damage to any freight during transportation
The above mentioned list isn’t limited to these focuses. The complete rundown is available on the official website of different insurance companies.
In case of any unforeseen damage, you need to immediately illuminate the insurance organization about the eventuality through its every minute of every day insurance helpline. You ought to be aware of the case process and tail it properly so as to evade any case rejections. However, the case process and the documents required fluctuate for different insurance companies and plans. Here is an essential understanding of how to approach the case process.
Educate the insurance organization, in the event that you need to make the case
- Provide the details like policy number and other documents, incorporating appropriately filled in guarantee structure
- Provide the witnesses, proofs, FIR copy, medical reports, etc., as per the requirement of the type of your insurance plan
- On receiving the documents, a surveyor from the insurance organization will verify all the details
- Whenever accepted, the case is processed within the stipulated time, else it may be rejected
Exclusions under Commercial Insurance
While offering coverage, insurance companies don’t include all cases and circumstances. The damage and loss that are not covered by the insurance firms are called exclusions. There are different sets of exclusions for different insurance types and plans. The rundown mentioned here does not include all the exclusions. To realize them in detail, please visit the official website of that specific insurance provider.
- For any insurance policy, any regular wear and tear or wilful negligence isn’t covered
- Any loss due to war or war like perils isn’t covered
Companies Offering Commercial Insurance Plans in India
With more awareness, an increasing number of people are presently considering purchasing different types of commercial insurance for their business needs and requirements. Some of the companies selling different types are:
• HDFC ERGO
• New India Assurance
• Bajaj Allianz
• Bharti AXA
• United India Insurance
• ICICI Lombard
• TATA AIG
Not all insurance companies provide a wide range of insurance policies and the coverage varies from organization to organization. As indicated by your need, make sure to examine all terms and states of the insurance policy that suits your specific business needs. Some of the focuses to be considered are:
- Make sure not to underestimate the valuation of the property under insurance. You may save a few hundred rupees however may land up in huge losses in case of an unfortunate event
- Make a complete declaration of the nature of your business, your perceived hazard and probable causes of loses. The insurance organization may reject your case, if critical data isn’t disclosed or misrepresented while taking the policy
- Keep away from exaggerated or false cases, as it can result in denial of the insurance. The serious misleading cases are considered extortion, and the insurance organization may file police objections against such a demonstration
Advantages of Commercial Insurance
To safeguard your business and property from any unseen circumstances and to handle the associated money related dangers, it makes sense to settle on commercial insurance. Some of the advantages are:
- On the off chance that you are running an organization or claiming an office, you would need insurance to protect your premises and employees. For this, you can select the appropriate type of commercial insurance for yourself. This protects you from all possible money related dangers
- In case your business deals with commercial vehicles, you can’t ignore commercial vehicle insurance. This gives you a chance to manage the heavy expenses incurred in case of any accident or eventualities
- In case your profession or business happens to deal with clients or outsider, a risk insurance under commercial insurance is an unquestionable requirement so as to manage the losses and any expenses for legal issues.