Business insurance is a type of insurance cover that is usually purchased by businesses to cover themselves against certain risks such as financial loss, employee health care benefits, accidents, theft, etc. As these are large companies, liabilities arising from such causes. The risk can be high, so this type of insurance becomes a big need for them.
Type of business insurance :
Public Liability Insurance:
A public liability insurance protects companies from paying their clients or the general public for losses caused by their business. Liability insurance can pay for subsequent legal costs and other expenses. It is a basic corporate insurance cover for business companies that interact and deal with customers on a regular basis.
Business Property Insurance:
Property insurance mainly covers the loss of company property due to certain incidents like fire, vandalism, civil disturbances etc.
Directors and Officers Liability Insurance:
It is a special type of corporate insurance policy that covers high-ranking officers of the company such as directors and other officers. It is a liability insurance payable as an indemnity for damages or advancement of defense expenses due to some legal action against these officers. Sometimes the cover is used by the company itself to indemnify it from financial losses during lengthy legal proceedings. It covers the cost of defense against allegations of criminal or regulatory investigation. Intentional illegal activity is not covered by this type of insurance.
Corporate Health Insurance:
Some companies opt for corporate health insurance cover. This corporate insurance covers the health and medical needs of employees as long as they are associated with the company. The cover expires after the employee is no longer associated with the company.
Professional Indemnity Insurance:
Professional indemnity insurance protects an employee of the company from bearing the full cost of defending against a client’s claim of negligence or malpractice, and also covers damages that may result from subsequent civil litigation.
Workers Compensation Insurance:
This corporate insurance covers the employee of the company against any kind of injury, accident or any misconduct during their work. It also covers the worker’s medical and legal bills if they incur any such incident.
Why business insurance is important ?
It is important for every organization to have a business insurance because of the high-risk environment they operate in and the liability that can arise. A disaster can hit the company’s operations at any time and it is important.
