Commercial Insurance Meaning: Features, and Types
Business loss is similar to swimming in deep water. It impacts you badly as you lose your source of income and may have to deplete your existing funds to bear the business loss. But individuals with commercial insurance wouldn’t have to worry. Continue reading to find out the reason.
What is Commercial Insurance?
Commercial insurance is an insurance plan that protects businesses against unforeseen mishaps. For instance, if your shop catches fire and the stock available turns into ashes, what will happen? If you have purchased a valid commercial insurance plan, the insurance company will bear the expenses incurred due to loss or damage.
Many insurance companies in India provide business insurance like shopkeepers' insurance, warehouse insurance, transit insurance, product and liability insurance, marine insurance, and others. Therefore, commercial insurance protects you financially and provides peace of mind during any mishap.
Features of Commercial Insurance
Business insurance ensures that you don’t have to worry about expenses during times of uncertainty. Aside from this, the below-mentioned are some of the features of commercial insurance.
- Legal Assistance: If your business deals with third-party clients, commercial liability insurance will cover the costs incurred due to legal problems.
- Commercial Property: Whether you own a business at a rental property or on your own property, commercial property insurance is a must. It will ensure that during mishaps like floods or fires, an insurance company will bear the repair or rebuilding costs.
- Stock Coverage: Business stocks are the bread and butter of your business. Any damage done to your stock will burn a hole in your pocket. However, an insurance company will bear the expense if you are covered under commercial insurance.
- Commercial Vehicle Cover: Commercial insurance is a savior if you are involved in transportation. If your commercial vehicle meets an accident or is stolen, an insurance company will cover the costs.
Types of Commercial Insurance
Here are the types of commercial insurance in which you can invest:
- Liability Insurance: This type of commercial insurance provides coverage against any loss incurred due to a third-party injury. Furthermore, it also covers legal expenses.
- Shop Insurance: This is a customized commercial insurance plan suitable for small and medium-sized business owners. It protects the shop owners against theft, burglary, or damage caused by natural disasters.
- Fire Insurance: Any loss or damage due to fire is covered under this type of commercial insurance. The policyholders can claim repair or reconstruction expenses incurred due to the fire under this commercial fire Insurance.
- Directors and Officers Liability Insurance: This type of insurance provides personal coverage for directors and officers of the company. It covers personal liability arising from wrongful acts such as negligence of errors or breach of duty during their professional period.
- Burglary Insurance: This insurance policy protects you against loss or damages caused by burglary or theft of commercial property. Some insurance companies also provide comprehensive coverage against riots, strikes, or other malicious activities.
- Office Package Policy: Under this type of commercial insurance, an insurance company provides comprehensive coverage against all damages. This includes theft, burglary, machinery breakdown, fire, and others.
- Erection All Risk Insurance: Any damage that happened during the installation of plant and machinery is covered under this type of commercial insurance. Third-party liabilities are also covered.
- Construction All Risk Insurance: It is an ideal commercial insurance plan for architects, financers, and construction engineers. The policy provides wide coverage if any loss occurs during contract or construction work.
- Plant and Machinery Insurance: Machinery ensures the smooth functioning of the business. Therefore, any damage that happens to your plant and machinery may cause financial loss for your business. However, plant and machinery commercial insurance provides coverage for contractors' construction machinery, such as excavators, cranes, and compressors.
- Cyber Insurance: Cyber crimes like stealing business data may bring serious trouble to your business. Therefore, to ensure that your business is financially viable if these types of emergencies happen, it is important to buy a commercial cyber insurance plan.
- Transit Insurance: This policy covers losses incurred during the transit of goods and merchandise. Furthermore, the policyholders also receive cargo coverage under this type of insurance policy.
Wrap Up
In conclusion, it is wise to purchase commercial insurance if you own a business. There are many types of commercial insurance, among which you can compare and buy the one that suits your business needs.
