Businesses are constantly at risk of losses. Any sudden event can place a huge financial burden on your business. While some businesses might sail through the storm, some unfortunate small businesses may not return to their original state after suffering a huge financial loss.
To be prepared for such situations, it is imperative that every small and medium enterprise (SME) has business insurance. Many insurance companies offer commercial insurance in India. You can choose from a variety of commercial insurance policies that provide appropriate coverage for you and your business.
However, there are different types of commercial insurance that you can choose from based on your needs and preferences. There are some important things you need to know before buying a business insurance policy. More importantly, there are some considerations you need to make before you buy insurance for your business. These include:
- Analyze the risks involved
The first step in buying your business insurance is to evaluate the risks that your business faces. It is simple; to get an idea of what kind of coverage would be best for you, you need to identify and assess all the risks your business faces. Your insurance company will assess the risks involved before giving you the premium that you need to pay for the policy. It also helps the insurance company to decide whether it will provide full or partial coverage at the time of claim settlement. The deductible you accept will also affect your premium because the higher your deductible, the lower your premium.*
- Cover for valuables
When buying business insurance, make sure you cover all of your valuables. A business premise may contain appliances, equipment, furniture, etc. Most of these items fall under general liability insurance under property damage. However, not all items are covered by this insurance. If your business has valuables such as expensive artwork and antiques, you should insure them separately. Apart from this, you also need adequate insurance to cover money and glass as it is not covered under general liability insurance.*
- Make sure you have fulfilled the insurance obligations
A business entity may be bound by law or contract to purchase a particular type of business insurance. Make sure you complete all such orders so that you do not face any legal action or penalty. Different types of business entities may require different business insurance based on the business position, manpower and contracts in India. For example, a shipping company might have to spend money on marine insurance. Many countries have made it mandatory for businesses to insure workers’ compensation insurance to protect their employees from injury or death in the workplace.*
- Choose self and business coverage
When buying business insurance, many business owners forget to cover themselves. They forget that they are the driving force behind the company and that the company may not be able to run without them. This is especially the case for small businesses and sole proprietorships run by a single owner. This makes business owners a valuable asset to the company and they should be covered by insurance. You can go for personal accident cover and medical cover to get compensation through an insurance claim in case of an accident or illness.*
* Standard T&C Apply
Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read sales brochure/policy wording carefully before concluding a sale.