What is Business Insurance? Eligibility Criteria, Important Aspects and Claim Process

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Losses in any business, small or large, are bound to happen. For a business to grow and flourish, you need to make sure that these losses do not affect your progress rate. To deal with such situations, it makes sense to take out business insurance.

What is Business Insurance?

Business Insurance

Business insurance is like a seatbelt that provides financial protection for a business against various risks. Business is not only profit but also multiple risks. Protecting your business from unpleasant events and incidents is extremely important for sustainable business growth. For this reason, more and more businesses are choosing business insurance.

Eligibility Criteria

Business insurance covers a wide range of large, small and start-up companies. Most financial institutions provide insurance for the following business units. However, the list does not end there.

  • Services sector
  • Small restaurants
  • Small retail stores
  • Indian trading companies
  • Indian manufacturing plants
  • Wholesale distributors and contractors

What all Business Insurance Covers

Business insurance offers comprehensive protection against all possible risks and unforeseen events that a business may face. Organizations can select a custom portfolio as listed below.

Group Mediclaim

Also known as a Group Health Insurance Plan, is a scheme that provides all employees and their immediate families with medical expenses. This usually includes fees for hospitalizations lasting at least 24 hours; It also covers 30 days hospitalization and 60 days after hospitalization.

Group Personal Accident

This is another type of Mediclaim business insurance policy. This covers the cost of unforeseen events, such as incidents. The policy also provides compensation for a close family member (e.g. spouse/mother) in the event of accidental death.

Asset Insurance

This plan insures the assets of the company. This is usually due to damage to buildings, utility rooms, walls and gates. Repairs are also covered.

Marine Insurance

This insurance plan covers costs incurred as a result of the loss of goods during transport. This scheme usually covers transit damage caused by such channels as railways post, couriers, roads, sea routes.

Liability Insurance

This scheme insures a third party associated with the company. Such legal liability is commonly seen in the manufacturing, construction and storage industries. This typically includes death from accidents, illness or injury, and loss or damage to property.

Fire Insurance

This covers costs incurred due to material loss due to fire. Some policies even cover property damage caused by natural disasters (such as earthquakes, storms, and floods).

Burglary Cover

In case of theft, the insurance company bears the costs. This policy applies to cash, jewellery, and valuables.

Risk Management

Some insurance companies can help your small business manage risk. For example, our risk engineering team has technicians to help businesses operate safely and efficiently. They provide services to help determine the causes of accidents and other losses in your business.

Documents Required for Claim Process

In an insured event, you should immediately contact the insurance company to file a claim. You must keep the required documents to avoid delays or rejections. Here are some of the documents; however, the list of documents varies for different insurance plans.

  • Correctly completed claims forms.
  • Photo or recording of the event. This will help confirm the facts stated in the statement.
  • Police reports based on need and type of insurance

Important Aspects

  • Business owners can only apply for compensation if
  • There is a real loss of business income.
  • There has been a business interruption due to an accident.
  • Make critical repairs as soon as possible because the insurer will need to know the repair cost and ask for the relevant evidence.
  • Business owners must inform the insurer about all aspects of their business. If the fact is not disclosed, it may invalidate the cover.
  • If the damage is due to lack of maintenance, the claim may be rejected.

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