An insurance is a financial agreement between a policy owner and an insurance company, in which the insurance company gives the policy owner the option to pay a premium at a specified interval in exchange for providing financial compensation when an event specified in the policy agreement occurred.
This provides the policy owner with a safety net against unforeseen losses both towards their assets and well-being.
A business insurance works in the same way, but the protection is catered for the risks and losses that happen specifically toward a business.
There are a few types of business insurance which specifically covers a different aspect and risk in a business. Here are some of the business insurance available and their coverage:
Fire Insurance
Fire insurance is a type of property insurance which provides the coverage for any loss and damage caused by a fire. This also includes the expenses due to fire related incidents. Here are the protection offered by the fire insurance:
- Property Loss or Damage: The loss or damages that happened to your property due to a fire is being covered by the fire insurance. This includes damage to the structure of your building, personal belonging, and the equipment that is inside your property.
- Natural Disasters: If a natural disaster such as storm, flood, or hurricane damages your business property, the cost of the repair for damage will be covered by the insurance company.
- Professional Fees: The professional fees incurred for the repair or reconstruction of the damage caused by any incident specified in the policy is being covered to ensure the policy owner will have the financial means to get their business back in order.
- Loss of Rental: The insurance will cover the loss of rental income while the property was rendered unusable due to the damages caused by a fire. This helps reduce the financial impact to the landlord during the repair or reconstruction process.
- Alternative Premises for Tenant: The cost for providing a temporary accommodation for the tenant is being covered by the insurance company. This ensures that the tenant will be having a place to stay at while the property is undergoing repair.
Peril Insurance For Businesses
Peril insurance for businesses provide coverage for risks and perils that affect a business property which include the building and its surrounding area. The particulars covered by peril insurance are:
- Natural Disasters: Any repair for damages that was caused by a natural disaster such as storm, flood, or hurricane are being covered by the insurance through this policy.
- Explosions: The damage received from explosions, which might be caused by accident, gas leak, or any other unforeseen incident, is being covered by the insurance. The policy helps to cover the cost of repairing and replacing the damaged equipment and other related expenses derived from the incident.
- Impact Damage: Damage caused by impact might happen to your premises, such as vehicle colliding, trees falling, or aircraft crashing into your business premises. This coverage helps to pay for the repair or replacement of the damages that happened to your property.
Burglary Insurance For Businesses
Burglary insurance for businesses provides the coverage for any damages caused by a theft or burglary incident. The insurance will cover these particulars:
- Loss of Capital: The insurance provides coverage and compensation for the loss of capital which includes cash, securities, valuable documents and other forms of capital stolen due to theft or burglary.
- Damage Incurred: If a burglar damages the door, locks or any other parts while breaking into your premises, the insurance will cover the cost for the repair or replacement of the parts damaged.
Money Insurance
Money insurance helps protect business against financial losses that are related to cash, currency or other negotiable instruments. This insurance covers the following aspect:
- Loss of Capital: The insurance provides coverage for the loss of capital which includes cash, securities, valuable documents and other forms of capital stolen due to incidents specified in the policy.
- Damage Incurred: Damage incurred to cash or securities due to specific incidents such as fire, flood, explosion, or vandalism is covered by the insurance. The policy will help reimburse the amount lost due to the incident back to the business.
Plate Glass Insurance
Plate glass insurance provides protection for businesses from financial losses incurred due to damage or breakage of glass plate such as the windows, doors, and glass structures on the premises. The coverage that this insurance includes are:
- Plate Glass: The insurance will cover the repair or replacement cost for plate glass windows, doors, and glass installations that are damaged from accidents, vandalism or natural disasters.
- Signboards and Other Signage: Your business signboards and other exterior signage that are made of glass is covered under this insurance policy. If the signage receives damage or is broken, the insurance can help cover the cost for the repair or replacement.
Public Liability Insurance
Public liability insurance is here to protect your business against the legal and financial liabilities that arise from a third party bodily injuries or property damage claims. This insurance covers:
- Slip and Fall Injuries: If a third party slips and falls while being in the vicinity of your property and sustained any injuries, your insurance policy will help to cover the medical expenses, legal fees, and any other cost caused by the injury claim.
- Medical Payments Coverage: The immediate medical expenses of an injured third party are being covered by the insurance policy. This will help reduce the likelihood of being served a lawsuit from the parties involved.
- Legal Fees and Defense Costs: The policy specifically covers the legal and defense cost associated for defending against a lawsuit claims that alleges negligence.
- Property Damage: If your business accidentally damages a third-party property, such as a customer’s vehicle or a neighbouring property, the policy will help cover the cost of repair or replacement for the damage.
Company Insurance For Employees
Company insurance for employees involves insurance coverages that protect the employees’ finances and address the various risks they may encounter during their employment. These insurance policy typically works by covering a few aspects which are:
- Slip and Fall Injuries: While slip and fall injuries are usually being covered under the public liability insurance, the employee’s insurance will cover the same incident if it happens to an employee. The insurance will cover the medical expenses and wages lost during the time they were rendered unable to work.
- Employee Disability Coverage: The employees who are temporarily unable to work due to illnesses, injuries, or disabilities will be given financial support for their medical expenses, rehabilitation, and the income lost during the duration.
- Life Insurance: provide death benefit to the beneficiary, which is usually the employee’s family or designated beneficiaries, in the event of the employee’s death while being covered under the policy.
