Doing business is not an easy task. Not only do you have to take important decisions to run the business successfully, you also have to ensure that the business is properly insured to protect the same from uncertain events. Insurance is one of the foremost things to keep in mind while starting a business. Insurance does not mean insuring the business, it also means insuring the people as well. So what are the types of Important Insurance Policies that are required for running a business? Here are 7 policies that you definitely need.
The importance of life insurance policies need not be emphasized newly. And any business must have that for its employees as well as for the owners. Life insurance provides protection against two most important aspects of life – living too long or living too less. It makes sure that not only the policy holder is secured, but family and friends are secured too. Apart from protecting life, life insurance policies provide other kind of protection like critical injuries, illness, disability, etc.
In India, life insurance is provided by innumerable companies. Most of these companies have special packages for entire businesses wherein with a single company policy, employees can be brought under the ambit of insurance. We have detailed blogs on various aspects of life insurance policies. You can browse our website to know more.
Long Term Disability Insurance
Accidents are accidents. They can happen anytime, anywhere. Accidents can lead to anything – even permanent or temporary disability. Medical expenses can increase manifold because of an accident. Moreover, permanent disability can also lead to loss of income. Opting for long term disability insurance is important. Long term disability insurance provides income protection wherein the insurance policy pays a certain sum of money either in lump sum or monthly to provide compensation for the loss of income.
Health insurance is important. As an employer, it is your duty to provide health insurance for your employees. With the help of health insurance, your employees will have access to medical benefits. In India, there are innumerable companies which offer health insurance for corporate as a package. In most cases, companies issue health insurance cards which can be produced in hospitals or clinics for payment of charges. This is an extremely useful insurance and is a must have for employers as well as employees.
If you own a company, by all possibilities, you should be owning vehicles like cars, motors, etc. If you have a transportation or cargo business, this will be more true. In India, no vehicle can ply on the road without a valid auto insurance. Having auto insurance is important to help you in case of any untoward incident like breakdown, accidents, etc. General insurance companies provide auto insurance and in most cases the car dealer itself has tie up with the insurance companies. However, it is not mandatory that you have to take auto insurance from the dealer itself. While taking auto insurance, chose very carefully which one do you want to take and then opt for the same.
Professional Liability Insurance
Liability insurance can be of various types. Professional liability insurance is the one which has the strongest effect. It provides protection against people who make accusations and claims to you and your company like negligence, misconduct, etc. A point to keep in mind is that professional liability insurance applies only during the period of validity of the insurance, neither before, nor after.
As your company grows bigger, the number of properties your company owns will also grow. Hence, property insurance is of prime importance. Property insurance provides financial protection to the owner or the renter against any untoward incident like damage, theft, natural calamities, fire, etc. The benefit of property insurance includes things like reconstruction and restoration.
Business Interruption Insurance
When your business gets interrupted due to any uncertain event, a business interruption insurance becomes extremely useful. In case of a catastrophic event, your business can get affected in many ways. Workers may not come to work, production can be hampered and so do supplies. With the help of business interruption insurance, both the owner and the workers can be compensated for the loss of income during such times.
The above mentioned insurance policies are useful for both small and big enterprises. However, as a business owner, you should first evaluate which are the insurances that work best for you and then opt for those. One word of caution – read all relevant documents carefully before investing in any insurance policy and do not depend on the agent blindly.
We have covered various aspects of insurance through blogs written by experts on our website. Browse through the website to find out interesting information about insurance for your business.