As companies set up operations and go about meeting their corporate objectives, their responsibility to meet employee and shareholder expectations come under the scanner. They are expected to have risk management practices in place to guard against internal or external dangers that might cause any setback to the business.
It is here that they take help of commercial insurance companies who can provide them with different services and products enabling these companies to have the necessary processes and risk management avenues in order. Having a sound coverage in place saves the company time, money and allows them to focus on their core competence.
These commercial insurance companies decide on the premium for offering such coverage to these companies based on the following points:
* What kind of a business they are in?
* How big is the organisation?
* The industry that the company belongs to
* Number of employees on the rolls of the company
* Projected turnover in case of a start up or actual turnover if already established.
The insurance company conducts its own due diligence in ascertaining the risk exposure to a company and then makes it offer. Very often such offers are customised to the specific requirement of each company and that is where the insurance companies succeed in building a loyal customer base over time. The company has the flexibility to pay the premiums on a monthly, quarterly or annual basis.
Let us look at some of the different commercial insurance types that are normally offered to companies. The most common are the property, liability and workers compensation types of insurance as these risks are something that every business would be exposed to in some form or the other.
Holistically, property insurance provides protection against any damage to property, the liability insurance provides protection against any claims arising out of damages to third parties and the workers compensation insurance provides on the job medical care/compensation to the workers besides also preventing them from going to court against the employer to file a negligence suit.
However, you can go ahead and take additional precautions depending on your business under the property cover as under:
a) Equipment breakdown Insurance
This provides cover against any interruption to the business caused due to the accidental malfunctioning of equipment including any damage to computers. You will get reimbursed for such an interruption.
b) Debris Removal Insurance
This type of insurance will provide cover for the expenses you would have to incur to clean the place after an unfortunate incident of fire, floods or storm.
c) Inland Marine Insurance
This insurance provides you protection against claims lodged by third parties for any damage caused to their assets while occupying your premises.
d) Insurance against burglary
In this you get protection against any theft involving money, securities and fixtures committed by any outsider or even employees.
Liability Insurance
Other types of liability insurance include the Errors and Omissions Insurance, wherein any lapse caused inadvertently and having the potential to cause harm to a third party is covered. A typical example is that of an agent forgetting to register the policy application form in time.
Author Resource:-
For more information about Commercial Insurance visit the Flint Insurance website.
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