Insurance has always been the safety net that every business wanted to protect itself against unexpected financial losses, risks, and threats. But with so many insurance options available, how do you decide which is the right insurance for your business? Since not every business is alike, the requirements will vary.
- Also Read – How to improve your money-making skills in business?
To make things easier, we have listed below the top ten types of insurance policies your business must have. Depending on your precise needs, you can invest in one or more insurance to get maximum benefits from them.
- Commercial Vehicle Insurance
Commercial vehicle insurance helps business owners cover damages and financial losses caused due to road accidents, natural calamities, collisions, etc. Whether you own goods-carrying or passenger-carrying vehicles, this insurance is apt for you. It is a must for businesses whose work involves the regular usage of one or more commercial vehicles.
Depending on your commercial vehicle type, you can invest in a truck, taxi/cab, auto rickshaw, or other commercial vehicle insurance. It should be noted that it is mandatory to insure commercial vehicles under this insurance, so ensure you don’t ignore it.
- Money Insurance
One of the most significant business insurance you must have is money insurance. It helps protect businesses’ monetary transactions and money in case of loss, theft, or other accidental damage caused to your money. Suppose you keep a lot of cash in the office or business lockers or deal in cheques, postal orders, money drafts, etc. In that case, money insurance can secure your business against any potential monetary damage or loss.
- Workmen Compensation Insurance
The workmen compensation insurance policy should be considered a mandatory investment by employers. Employers are required to compensate employees for any injury caused to a worker or employee during the course of employment. If your employees get injured while performing the work duties, resulting in disability, bodily injury, disease, or death, you can reimburse them for the same through this insurance. By investing in workmen’s compensation insurance, employers can easily meet the requirements stated in the workmen compensation act and save them against any possible lawsuit.
- Liability Insurance Policies
This insurance is designed to protect businesses from any financial claims from damage or injury caused by your business’s operations or products. Claims related to injuries caused on your work premise are also covered under liability insurance policies. There are numerous liability insurance types, and you can invest in the right option depending on your business requirements. Contractual liability insurance, public liability insurance, management liability insurance, and professional liability insurance are some commonly purchased insurance by most businesses.
- Group Health Insurance Policies
A group health insurance policy is taken to provide healthcare coverage to all employees. Under this policy, the employer pays the insurance premium, and all employees are covered under the same plan. Many top companies offer group health insurance as part of CTC to attract and retain the best talent. If you have too many employees working for you, covering them all under group health insurance can be beneficial in the long term.
- Electronic Equipment Insurance
Almost every business requires some electronic equipment to run day-to-day operations efficiently. If your business has too many electronic machines, consider insuring them to minimise financial losses arising from their damage or replacement costs. Whether your office has too many printers, computers, Xerox machines, etc., you can insure them all. The best part of electronic equipment insurance is that you can also insure system software. If you want to protect your business against financial damage to external data, repair or replacement costs, etc., this insurance is ideal for you.
- Fidelity Guarantee Insurance
No matter how well-designed your hiring processes are, there always remains a chance of hiring dishonest employees. The fidelity guarantee insurance will protect your business from monetary damages arising from dishonesty, fraudulent activities, and theft caused by employees. If your employees engage in any fraudulent activities during the course of their employment, you can protect yourself from the associated financial damages because of this coverage.
- Property Insurance
The instances of commercial buildings getting damaged due to fire, natural calamities, man-made disasters, etc., are constantly increasing. If you don’t insure your commercial properties, you may incur massive damages if the property gets damaged for any reason.
To protect your commercial property, you can invest in burglary, building, signboard, consequential loss (fire), and plate glass insurance. All these different property insurances are designed to cover various financial losses caused to your commercial building for different reasons. You can invest in property insurance based on your business requirement.
- Travel Insurance
Business travel is a part of most businesses, but what if your business trip gets cancelled at the last moment or you miss the flight? The resultant financial damages can be huge for many businesses. It is where travel insurance can save you from losses. You can secure all your business travel investments with the right travel insurance. If your employees visit foreign destinations frequently for work purposes, travel insurance can be the best investment. It covers damages arising from lost baggage, a change in travel dates, a lost passport, etc.
- Directors and Officers (D&O) Insurance Policy
The Directors’ and Officers’ insurance is a plan designed to protect people in the managerial posts of a company. If people in managerial positions get accused of wrongdoing, D&O insurance ensures the business is protected against risk and financial exposure. For example, suppose the employees of a company sue the business for misdeeds like harassment, discrimination, etc., by directors or other top-rank employees. In that case, the business remains protected against any financial damages.
These are ten insurance that every business may need, so you should get them at the earliest to prevent any potential financial damage.
The Right Business Insurance Can Save You from Potential Financial Damages
Insurance is the best tool businesses can use to protect them against potential financial losses or damages. But since the market offers plenty of insurance plans, it is normal to get confused and pick the right insurance. To cut the unwanted insurance plans, we have listed above the ten necessary business insurance plans that you must have to protect your business.
Depending on your current business requirements, you can invest in one or more plans. The more safety nets you create for your business, the better protected you will remain in the short and long run. So explore all the options, consult an insurance provider, and invest in the relevant plans at the earliest.
