What is Corporate Insurance & What are its Features and Benefits?
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Updated date : 07 June 2019
A corporate insurance may be defined as a type of insurance which can be used by large organizations to cover up various operational risks such as theft, financial losses, employees’ health benefits and accidents. Such an insurance plan is also known as business insurance and it is of great benefit for the officers who are involved or were involved with the company and obviously, for the company itself. In this regard, it should be noted that the protection has certain limits. The officials of the company are held responsible for any personal actions which will not be covered by this insurance.
Types of Corporate Insurance
Corporate insurance is a provision through which organizations can cover their losses. Here is a list of the types of corporate insurance available in the market; one should definitely have at least one of these in order to financially protect an organization and for keeping the business running swiftly.
- Property Insurance: In case the property of an organization gets damaged by incidents such as natural calamity, fire, worker’s unrest, vandalism etc., property insurance can help cover the losses. Some insurance plans cover all types of incidents with an exception of very few ones under their All-Risk policies. On the other hand, there is another type of property insurance that is known as peril-specific policies which provide financial cover only for those losses that are listed in the policy.
- Professional Liability Insurance: This type of insurance is also called Errors and Omission Insurance (E&O) insurance and protects the business from all types of negligence claims and certain mistakes. It differs from one industry to another and is addressed through an industry-specific customized policy. This type of corporate insurance is mandatory for any organization that deals with accounting, finance, consulting, healthcare, law and insurance.
- Workers’ Compensation Insurance: A company should add Workers’ Compensation Insurance in its insurance list the moment its first employee is hired. It covers the medical treatment expenses of the employee and provides compensation in case of death or disability of the employee while he/she is working for the company.
- Group Health Insurance: One of the most important corporate insurance, Group Health Insurance offers healthcare benefits to a group of people, i.e. the employees of an organization. Generally, this insurance plan is uniform in nature and offers the same benefits to all the members of the group. What’s more, Group Health Insurance helps in availing substantial tax benefits.
- Product Liability Insurance: If you have a business which manufactures products for mass consumption in the general market, then you should definitely have Product Liability Insurance. Even if the manufacturer is sure that the products are flawless and safe, you ever know if the product will end up causing damage to someone. Thus, the best option to protect a manufacturing business is with the help of this specific type of corporate insurance.
- Business Interruption Insurance: There are likely to be incidents when certain events and occurrences can interrupt the normal course of your business. This insurance will help cover up the losses one faces in this interruption period. Business Interruption Insurance is the best for a retail store or for the type of business in which one needs a physical endpoint to get in touch with the customers.
Thus, there are many types of corporate insurance that can assist you during the course of your business and can assure full financial protection of the same.
Features of Corporate Insurance
Although there are multiple types of business insurance and each has its own advantage and benefits. However, there are certain common features which all of these corporate insurance plans share. These are listed below.
- Corporate Insurance gives you the absolute lawsuit protection, regardless of the fact that there is anything wrong done on the company’s/professional’s behalf. Even after being unintentionally negligent, with the help of an insurance policy, one shall be able to cover the losses and their business will be well-defended.
- In some cases, the insurance company appoints a lawyer to defend the business against the claims.
- The Group Health Insurance of the company will also act as a financial relief to the employees so that they can cover any of the physical losses that they face including serious health issues and even death.
- Having your business fully insured is not only necessary but is also a smart decision. Every sort of business, whether big or small, should definitely have certain types of insurance to cover any unprecedented legal repercussions.
Benefits of Corporate Insurance
After analyzing the types and features of Corporate Insurance, it is very much understood that it is one of the important aspects of a business in the direction of avoiding any hassle or loss. The benefits of business plans are as follows.
- A corporate insurance helps keep the business running in the face of a fiasco. It can protect your company from loss of income caused due to serious disasters.
- Your business looks more credible when it is protected by insurance. Employees perform better when they know that there are provisions for their financial protection if they are unable to carry on their tasks. Thus, you can attract and retain your employees with the help of Group Health Insurance.
- If you are looking forward to having a business contract with a client, the first thing that your client will notice is whether your business is insured or not. Some clients even specify that they will work with only those companies which have their company properly insured.
- There is also a provision of protection of your properties against the “Acts of God” such as Hurricanes, tornados, earthquakes and floods. The property and office shall be protected against the losses incurred during this course of time.
- Since employees are the real assets of your business, it is them who keep your business running and flourishing. Hence, it is your duty to ensure their safety. Regular healthcare facilities, checkups and compensation in case of disability or death will make them rely on the company. This way the company too shall be able to retain the best talents.
- There are possibilities of theft in any new business. In order to protect the furniture, computers etc. from theft, these insurance plans are a must.
Thus, a corporate insurance is a must for any company planning to achieve great goals in future. To safeguard the interests of the organization and employees, employers must get proper insurance plans at the earliest.
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