5 Things you Must know about your Business Insurance
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Updated date : 09 December 2020
Businesses are under constant risk of losses. An unforeseen incident can cause a huge financial burden on your business that you might not have accounted for. Some unfortunate and unforeseen small businesses cannot get back to their original standing after suffering from such a huge financial loss.
In order to stay prepared for such situations, it is important for every small and medium enterprise (SME) to have business insurance. Many insurance companies offer business insurance in India. You can choose among different types of business insurance that provide suitable coverage to you and your business.
Although, there are different types of business insurance that you can opt for depending on your needs and preferences. Before buying a business insurance policy you must know some important things. Here we have discussed five important things that you must know about your business insurance before buying one.
5 Things to know about Business Insurance:
Business Insurance India may vary as per your business and requirements. You can get an idea about business insurance India provided by different insurance companies online or by consulting an insurance agent. Ensure that the insurance company or agent that you buy your policy from is reputed and is offering maximum coverage in minimum costs.
There are certain things that you need to know before you go ahead to purchase business insurance.
Analyse the Risks Involved
The first step towards buying your business insurance is to analyze the risks involved. You need to assess what all risks may surround your business to get an idea of what you want to get covered. Your insurance company will estimate the risks involved before offering you a policy price. It will also help the insurer to decide whether it will provide total or partial coverage at the time of claim settlement. The deductible you agree on also impacts your premium as the higher your deductible goes, the lower your premium will get.
Do Cover for Valuables
While purchasing business insurance, make sure you get all your valuables covered. A business premise may include equipment, tools, furniture, etc. Most of these items are covered under general liability insurance under damage to property. However, not all items are covered under this insurance. If your business is in possession of certain valuable items like expensive artwork and antiques, you will have to get it insured separately. Moreover, you will also need suitable insurance to cover money and glass as it is not covered under general liability insurance.
Ensure You Fulfil Insurance Obligations
A business organization may be obligated by law or contract to purchase a certain kind of business insurance. Make sure you fulfil all such mandates so that you don’t attract any legal action or penalty. Different kinds of business organizations may need different business insurance India depending on the business location, employee strength and agreements. Most countries have made it compulsory for businesses to have Worker’s Compensation Insurance to safeguards their employees against an injury or death at the workplace.
Opt for Self and Business Coverage
While buying business insurance, many business owners forget to get themselves covered. They forget that they are the driving force of the organization and their business can’t operate without them. This is mostly the case in small businesses and sole proprietors that are run primarily by a single owner. This makes him an important asset to the company and should be covered with insurance. You can go for Personal Accident Cover and a medical cover to get compensated in case of an accident or sickness.
Make Sure You Are Sufficiently Insured
A lot of businesses get them underinsured and suffer losses at the time of adversity. They wrongly estimate their asset value and end up getting themselves inadequately insured. Estimating the true value of your assets and getting them insured to that value is important for running a profitable business. Moreover, the value of your asset should be regularly estimated to asses if there is any change in its value.
Many business owners don’t account for this loss of income while buying an insurance policy and get themselves underinsured. In case of a sudden closure of business or striking of a natural calamity or storm, the business operation would get affected. You should also get your business insured for a time when operating your business is not possible.
Up to you!
Business insurance can be one of the smartest decisions a businessman can take for the betterment of his business, especially small and medium enterprises. With business insurance India, you can stay adequately prepared for all uncounted losses when an unfortunate incident endangers your business. In some cases, it can also help you evade any legal liability or closure of your business. Assess all the risks that your business can be exposed to and choose the type of business insurance that suits your company’s requirement.
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