There is no denying the fact that success of a business depends on the hard work of the team but one disaster can wipe out your efforts and bring down the profits to dust. So, to avoid such an instance, you need to insure your business, whether it is a small enterprise or a large corporation.
There are insurance companies, which have policies that combine protection for all major property and liability risks in one package. You can also opt for separate coverage. Such a policy is called a business owners’ policy (BOP). Larger companies may purchase a commercial package policy.
BOPs include property insurance for buildings and equipment owned by the company. If there is any loss of income due to disruption of operation and business because of accidents like fire, it can be covered under the Business Interruption Insurance.
There are liabilities, which cover the company's legal responsibility for the harm it may cause to others. It is the result of your company’s failure to do the business operations. It can also be the bodily injury or property damage caused due to defective products, faulty installations and errors in services provided.
However, BOPs don’t cover professional liability, auto insurance, worker’s compensation or health and disability insurance. Separate policies are needed for professional services, vehicles and employees. Generally, floods, earthquakes and terrorist attacks are not covered in the business insurance.
Protection Against Flood Damage
If your office is in the flood zone area, you must definitely go for a policy, which provide coverage against flood. Try to find out whether the place had been hit by flood in the past. Make sure you do something in advance to make up for the loss. Otherwise you may face trouble.
Protection Against Earthquake Damage
Earthquake is also not included in most property insurance policies such as homeowners and business owners’ package policies. Special Earthquake Insurance Policy or Commercial Property Earthquake Endorsement can cover you if you live in an earthquake-prone area. However, earthquake policies have different deductibles.
Business Interruption Insurance, which reimburses you for the lost income during a shutdown, applies only to the damage covered under your business property insurance policy. There won’t be reimbursement for the loss caused due to the closure of business because of the earthquake. For it, you must have an earthquake coverage policy.
Protection Against Terrorist Attack Losses
Loss due to any terrorism is covered only for those businesses that have optional terrorism coverage. Still, there are exceptions in workers’ compensation, which include injuries and deaths due to acts of terrorism. This is still a very new and evolving area, and only a few insurance companies offer terrorism coverage. It could be very useful for Hotels (we all saw what happened at Taj and Oberoi Hotels on 26/11/2008).
We can help you. You can buy insurance policies offered by insurance companies in India through our website, while receiving very competitive quotes from qualified and IRDA registered Insurance Agents.