Commercial Insurance – Coverage, Claims and Exceptions

Commercial insurance or business insurance is a form of insurance that provides protection against risks associated with any business. There are many commercial insurance policies available in the market to help businesses finance various business risks. This insurance can be for a store, mall, industry, warehouse or car.

What is commercial insurance?

Commercial insurance protects businesses from any sudden losses. Commercial insurance policies include shop owners insurance, store insurance, transportation insurance, product and public liability insurance, employee debt insurance, marine insurance, local insurance, etc. These policies provide protection for business owners in the event of problems.

Types of commercial insurance..

There are many types of commercial insurance available in India, which protects businesses from many risk.

  1. Shopkeepers Insurance(Consumer Insurance)
  2. Transit Insurance(Transport Insurance)
  3. Commercial Vehicle Insurance
  4. Liability Insurance(Credit Insurance)
  5. Warehouse Insurance(Store Insurance)
  6. Marine Insurance(Maritime Insurance)
  7. Office Package Insurance
  8. Umbrella Insurance
  9. Landlord Insurance

  1. Consumer Insurance: Consumer Insurance Policy is a good option for shopkeepers who sell groceries, clothing retailers, small restaurants, candy stores etc. This policy covers all hazards and emergencies for small or medium-sized shop owners. Cover damage related to the following issues:
  • Fire and associated hazards,
  • Theft,
  • Mechanical deterioration,
  • Serious accident.
  1. Transport Insurance: Transport insurance is taken to avoid any losses during the transfer of important business assets from one place to another. For example, transportation insurance covers any losses due to loss of property, from the supplier’s factory to the point of sale. The obligation to take out transport insurance must be set out in the contract of sale and the insurance must be obtained before leaving the supplier’s premises. Transport insurance only applies to goods shipped around the world. The following items are covered under transit insurance:
  • Packaging material,
  • Manufactured goods,
  • Raw material.
  1. Commercial Vehicle Insurance: Those car owners who are in the business of transporting passengers or goods should take out business car insurance. This insurance protects the commercial vehicle from various external damages. Some of the most important features of car insurance are:
  • Death or bodily injury caused by motor vehicle use.
  • Any damage to property caused by vehicle use.

4. Credit Insurance: This policy provides protection against risks to businesses and individuals, thereby holding them accountable and responsible. For example, a factory owner may face a debt claim from employees who are injured by a factory electric shock. Employee debt insurance can cover legal costs and medical expenses in such a case.

5. Store Insurance: Businesses where most of the work is done in many warehouses may consider purchasing warehouse insurance. This includes natural disasters, fires and similar unpredictable conditions. In addition, you can get compensation against theft and threats of theft.

6. Maritime Insurance: When goods are shipped overseas by sea, they travel by rail, road, water and possibly air. It unpacks a few hands before reaching the final destination. To protect the basic design and equipment of the ship, shipowners take out hull and equipment insurance. Property owners take out seafood insurance to protect goods along the way. Maritime insurance may cover fixed periods or trips, or both.

7. Office Package Insurance: This type of insurance covers everything including a personal office and under-the-roof infrastructure. Protects the office in the event of damage from fire, theft, earthquakes, etc. It also provides personal risk. One must understand all the points included in the policy. Please note that the policy does not cover any issues that arise as a result of an illegal act or state of war.

8. Umbrella Insurance: An umbrella insurer is additional credit that exceeds the limits of homeowners insurance, car insurance, or shipping. It provides an additional layer of protection for those who are at risk of being sued for damages or damage caused by others in an accident. It also protects them from verbal abuse, vandalism, slander, and secrecy.

9. Landlord Insurance: Homeowner’s insurance provides the landlord’s protection in the event of property damage. Homeowner’s insurance is property insurance purchased by homeowners to cover their properties and assets within those properties. This policy helps homeowners to rebuild and renovate their buildings after fires, burglaries, and other covered claims. These policies only cover the area the homeowner owns. In other words, homeowner’s insurance policies do not provide any cover for tenants.

What is commercial insurance cover?

There are many commercial insurance policies that offer different coverage for different cases or situations. Let’s take a look at some of the types of cover offered by different insurance companies.

Home insurance covers a house and its property.
The group’s health insurance pays for medical expenses during the hospital stay
Credit insurance covers the costs of debt and other damages caused by a person or property created by your business, profession or vehicle.
Transport insurance provides cover for the loss or damage to any property during transport.
The above list does not contain complete information related to commercial insurance. For more information visit the official website of various insurance companies.

Benefits of buying commercial insurance..

Commercial insurance is the best option to protect your business and property from any unforeseen circumstances and to cover financial risks. Some of the benefits of buying commercial insurance are listed below:

  • If you own a company or have an office, you will need insurance to protect your property and employees. With this, you can choose the right type of commercial insurance. It protects you from any potential economic hazards.
  • If your business deals with commercial vehicles, then commercial vehicle insurance is best for you. It gives you the opportunity to deal with the huge losses that can occur in the event of accidents or incidents.
  • If your work or business deals with clients or third parties, credit insurance under commercial insurance may cover damages and legal issues.

Essential Points

Not all insurance companies offer all kinds of insurance policies and the provision varies from company to company. Know all the terms and conditions of insurance, according to your need. Below are some related points:

  • Don’t think that getting insurance has made the place / thing more expensive for you. You can save a few dollars but a bad event can lead to huge losses.
  • Describe your business type, business risk and potential losses. If you did not disclose important information to the company or provided incorrect information while taking out insurance, the insurance company may reject your application.
  • Avoid false claims, as this can lead to insurance rejection. This is considered fraud, and the insurance company can file a police complaint against it.

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