Even though the new-year brings with it newer plans, strategies, resolutions, a few fundamentals remain the same — chief among them being that your business needs insurance cover. No matter how small your business is, it needs adequate cover against uncertainties, risks and abnormal loss. An appropriate insurance cover will rid you of haunting thoughts of financial losses, liabilities and allow you to plan ahead.
Types of Insurance:
Take a look at the type of cover that may be appropriate for your business. Remember, while the different covers under the Commercial Business Insurance may not be compulsory, the Employer Insurance covers are mandatory in-case your business falls in the prescribed limits specified in the respective acts.
• Commercial Business Insurance:
• Machinery &Equipment, Plate Glass, Neon Sign: Covers for losses incurred on account of damage and business interruption due to fire, breakdowns, vandalism, etc.
• Burglary & Housebreaking: Covers contents of insured business premises (excluding money and valuables) against loss or damage by burglary and/or housebreaking.
• Money: Covers loss of money in transit, loss of money/valuables whilst contained in a locked safe, loss of money contained in cashier’s till and/or counter by burglary/housebreaking.
• Baggage: Covers loss or damage to accompanied personal baggage of insured or baggage in connection with his trade, whilst anywhere in India, by accident or misfortune.
• Loss of Profit:Covers loss of profit due to interruption of business consequent upon loss or damage sustained by property insured due to insured perils.
Liability Insurance: Liability Insurance Policies cover you for the cost of defending and resolving a suit against your business and includes:
• Malpractice:Covers you in the event of any malpractice by any member of your team
• Error and Omissions: Covers you for mistakes or oversights that causes damage to a third party.
• Directors’ and Officers’ Liability:Covers the costs of lawsuits against directors and officers.
• Legal liability: Covers accidental death or bodily injury to a third party or accidental damage to their property during performance of any act in connection with insured’s business.
Employer Insurance: • Employees State Insurance: A mandatory requirement under the ESI Act, 1948, for all factories employing ten or more workers to cover the workers against sickness, maternity and employment injury.
• Workmen’s Compensation Insurance: Again, mandatorily required under the Workmen’s Compensation Act 1923 to provide for the payment by certain classes of employers to their workmen of compensation for injury by accident.
Safeguard Yourself with the Right Information: It is worthwhile to arm yourself with the right information while dealing with insurance policies, claim procedures and denial redressal.
• Before taking a new policy, disclose everything to the best of your knowledge in the form, including all existing and proposed insurance.
• In case of improper issue of policy, the same can be rectified even after a loss in case it was found that there was a genuine mistake.
• Laws require insurance companies to provide written explanations for claim denials. Insist for it in case your insurer doesn’t give you one while denying the claim.
• In case you are not satisfied with the decision/resolution of the Insurance Company, you may approach the Insurance Regulatory & Development Authority (IRDA) or the Insurance Ombudsman. The complaint may relate to any grievance against the insurer. For eg:
- o Any partial or total repudiation of claims by the insurance companies
- o Dispute with regard to premium paid or payable in terms of the policy
- o Dispute on the legal construction of the policy wordings in case such dispute relates to claims
- o Delay in settlement of claims
- o Non-issuance of any insurance document to customers after receipt of premium