If you run your own business then you must do everything to safeguard it from financial risks like property damage, employee-related risks during operations, or legal liabilities. These incidents if not handled properly can set your company back and in certain cases can even lead to partial or complete closure.
A business insurance policy can help you mitigate many of these risks as a business owner. It can work as a core component shielding your business financially and legally, and in difficult times, it may also keep you from losing your company and your main source of income.
Keep reading to learn why you need insurance for your business, and what is commercial vehicle and workmen compensation insurance. Also, learn about other insurance policies that your business needs.
Business insurance is a necessity as these plans can help you protect your company and yourself from professional and legal liabilities like fire, theft, medical expenses, general third-party liabilities, worker's compensation, etc.
Without the right insurance policy, you may have to pay out of pocket for all the above-mentioned damages. This can be quite expensive and your business may suffer irreparable damages.
Below is a list of key reasons that prove why your business needs the safety of insurance policies.
Ensures Your Business Runs Smoothly: You cannot control business interruption, accident, or incident as well as consequential losses. However, you can ensure that your business is not affected by it and keeps functioning smoothly, with the help of a business insurance plan.
Coverage from Natural Disasters: In case of a natural disaster when your business is severely affected, property insurance can provide you financial coverage for damage caused to buildings, property, equipment, etc.
Moreover, insurance coverage for the loss of income can help your business get back on its feet after the storm has passed.
Protection Against Future Uncertainties: The world of business is volatile. While it is full of possibilities, it is also full of uncertainties at the same time. Having said that, uncertainty should never stop you from accomplishing your business goals. To ensure the safety and security of your business, you ought to opt for a business insurance plan.
It is Cost-Effective: The insurance premium for most business insurance plans is affordable and the offered benefits make it worth it.
Gives You Peace of Mind: As a business owner, peace of mind is important so that you can run your business stress-free without worrying about the risk of loss or damage.
Workmen compensation insurance provides financial compensation and optional medical care to employees who are injured or become ill in the course of their employment.
This policy is an integral insurance plan for your business as it secures both employees and employers from significant financial liabilities. Let us look at the different workmen compensation policy benefits for employees and employers below.
Comprehensive Financial Coverage: In case of work-related accidents, this insurance policy provides necessary financial support for a set period or until the employee gets better- subject to the policy’s terms.
Security of Income: Workmen compensation insurance, provides security to employees who face temporary or partial disability due to a workplace accident.
The policy provides a portion of the monthly salary to the injured employee to ensure there is no financial gap for them and their family members until recovery.
Death Benefits: As per the terms of the policy, financial compensation is extended to the family members in case an employee suffers from permanent disability or death due to work accidents.
Coverage Flexibility: The workmen's compensation policy can provide employers with a variety of coverage options based on specific requirements and categories of employees.
Better Working Environment & Improved Market Image: Since the policy provides a secure financial safety net to employees, it indirectly adds value to the working environment. This improves the market image of your business as well as the employee retention rate.
Legal Relief: One of the benefits of the policy for employers is allowing them to meet the statutory requirements as a business. This insurance plan acts as a significant investment that extends financial assistance for lawsuits and other legal liabilities.
Commercial vehicle insurance is a mandatory motor insurance policy that protects your commercial vehicles like trucks, cabs, buses, and auto-rickshaws, from financial losses. It covers third parties involved in an accident with your vehicle for injury, property damage, or even death.
A commercial vehicle insurance policy is crucial for your business and provides a lot of benefits.
Covers Third Party Liability: The insurance financially protects you in case your vehicle is involved and responsible for an accident that damages another person’s property or injures someone.
Covers Physical Damage of Insured Vehicle: The plan provides financial assistance for damages to your insured vehicle from accidents, fire, theft, or vandalism. It also covers losses or damage caused by natural calamities, fire, man-made disasters, theft, etc.
Provides Legal Assistance: Commercial vehicle insurance policy helps you comply with legal requirements. In India, it is mandatory for all vehicles plying on the road to have at least third-party liability insurance. Failing to comply with this requirement can result in penalties, fines, or even imprisonment for car owners and drivers.
Apart from the above-mentioned policies, the list of insurance plans provided below can prove to be a valuable addition to your business.
Liability Insurance Policy: This policy protects your business from claims resulting from injuries or damages caused during business operations, by company machinery or products. It also provides cover for financial liabilities for accidents that have occurred on your company premises.
Property Insurance Policy: The policy covers losses resulting from theft or damage to your commercial property and its content. The cover applies to both rented and personal business spaces.
Burglary Insurance: As the name suggests this insurance policy covers losses due to theft of cash, jewellery, and other company products.
Fire Insurance: The plan covers the expenses your business has incurred due to any damage that was caused to your building due to a fire.
Business insurance is a crucial component that can help protect you as well as your business from unexpected events and financial losses. Choosing the right type of business insurance is the smartest thing you can do to ensure your business’s longevity.
The above-mentioned plans will give you a head start and help you secure your business in today’s economy.