Business Ins

Risk is part and parcel of a business and is unavoidable. However certain risks that a business faces can be avoided by ensuring your business called business insurance. You pay a premium and insure your business for a sum of money called sum assured. Business insurance covers fire and allied perils, loss of Company equipment due to theft, third party liability if your business causes damage to public property and a Professional Indemnity cover.

Business insurance protects your small business from financial damages that can result from accidents, property damage, professional errors, workers’ compensation claims, and other situations. Having accurate coverage is critical in minimizing the negative impact of claims against your business.

Types of Coverage

From basic protection to specialized coverage, the Progressive Advantage Business Program offers several types of commercial insurance so you can get the best combination of coverage for each stage of your business’s development.

1. General Liability

Most small businesses need this coverage. It guards against things like bodily injury, property damage, completed operations, and advertising injury that arise from your business. Sometimes people refer to this coverage as business insurance.

2. Commercial Auto

You need this coverage if you use your vehicles for business. This can include traveling between job sites, making deliveries, or transporting tools and equipment. It provides liability and physical damage protection for your business vehicles and trailers.

3. Professional Liability

Liability protection for businesses that offer professional services or advice. It protects against claims of professional negligence. It’s also known as Errors and Omissions insurance.

4. Cyber Insurance

Protects against electronic threats, such as data breaches and cyber-attacks. Businesses that store or process sensitive data like credit card information should consider this coverage.

5. Business Owners Policy (BOP)

This coverage packages business liability and property coverage into one policy. It’s a common choice for small businesses with commercial buildings or personal property.

6. Workers Compensation

This protects you and your employees. It helps pay for expenses such as medical costs and lost wages related to employees who become injured or ill on the job.

Insurance by your profession:

• Business insurance cost

In 2019, the national average cost of a new 12-month business insurance policy through the Progressive Advantage Business Program ranged from $46 a month for professional liability to $85 a month for workers’ compensation.

Your cost is based on a variety of factors including the industry you’re in and the specific types of jobs you do. For example, one landscaping company might only mow lawns, while another offers additional services such as tree trimming. They’re both landscapers, but their exposure to risk is different and will be reflected in their rates. Discover more factors that influence business insurance rates and what you can do to get the coverage you need at the best price.

• Customized coverage

We offer customized coverage that matches your business’s level of exposure to certain risks. A customized policy includes the coverages you need, with limits that match your specific requirements. Customized coverage is flexible, so if your situation changes – or you simply change your mind – you can update your policy at any time.

Be wary of “one-size fits all” policies. They can have gaps in coverage that leave you exposed. For example, You might assume general liability covers any type of business liability; it doesn’t. Learn the differences between general liability and professional liability insurance.

We focus on customizing your policy upfront to avoid these types of problems and so you can feel confident you’re getting the right insurance the first time.

Additional business insurance products

• Liquor Liability Insurance

Liquor liability insurance is coverage for businesses that make, sell or serve alcoholic beverages. It is also known as dram shop insurance.

• Inland Marine Insurance

Originating from the early shipping industry, this is coverage for movable property, equipment, tools, supplies, and various other goods during transport over land.

• Employment Practices Liability Insurance

Also known as EPLI, it protects against claims related to employee discrimination, sexual harassment, and wrongful termination.

• Rideshare Insurance

Rideshare insurance is intended to fill the gaps between the insurance ridesharing companies, like Uber or Lyft, provide for their drivers and their drivers’ policies.

• Commercial Property Insurance

Also called business property insurance, it protects commercial buildings and moveable property your business owns. It’s offered as a part of a BOP.

• Excess and Surplus Insurance

Insurance for businesses who can’t get coverage in the admitted market. This includes new ventures and businesses with unusually high risk.

• Employee Pet Insurance Benefit

Employee Pet Insurance is a voluntary benefit that employees can opt into to which helps cover their pets’ medical expenses.

• Health Insurance

Health insurance is a benefit that lets your business offer quality medical care to your employees and their dependents.

Why Business Insurance?

You invest a lot of money in a business. You want to concentrate only on making a profit. You have uncertainty in the business environment (inflation and political changes) which can affect your business. There is nothing you can do about these changes in the business environment. A business also faces a risk to its location due to a fire, flood, or a natural calamity. This is true mainly for a manufacturing unit (Factory which manufactures products). Your business might face risk from the theft of data by your employees. This is true especially in the service industry (Financial services and IT). On the job, injuries are common to a business (especially for a manufacturing unit). You would have to pay a lot of money in compensation to your employees injured on duty. The risk due to this uncertainty can be avoided by availing business insurance.

Features of Business Insurance

Though having your business insured is not mandatory in India but it is necessary. Business insurance India comes with certain features that make the policy worth your money:

• Damage to the property due to fire or natural disasters such as flood, earthquake, storm etc.
• Loss due to theft
• Business insurance covers third party liability on the business
• Injury or death of an employee during the course of his/her work is covered
• It covers the loss of profits after an outbreak of a calamity
• Liability arising out of negligence and errors

Benefits of Business Insurance Policy

The benefits of Company Insurance plans are as follows:

• Company insurance plan protects the business against losses due to an interruption of the normal course of the business by covering the disasters like fire or a natural calamity
• It offers credibility to the company by getting its business insured
• Group policies offered to assure the safety of the employees and help the employers retain the talents within the company. Eventually, it aids in more growth of the company
• These days clients also consider those companies that are well-insured with business insurance
• The physical assets of a business such as computers, furniture etc. are well-protected from theft if it is covered by a business insurance policy

Business insurance covers a wide range of big, small, and start-up businesses. Most of the financial institutes provide coverage to the following business units. However, the list does not end here.

• Service industry
• Small restaurants
• Small retail stores
• Indian trading companies
• Indian manufacturing units
• Distributors and wholesale contractors

While business insurance can keep an organization safe from most of the risks associated with its business, few perils are not covered under this policy.

These include proper loss or damage caused by:

• Wildlife
• Power failure
• Wear and tear
• Military action
• Nuclear hazards
• Any type of pollution
• Governmental actions
• Explosion of machinery
• Expansion and shrinking of property
• Action as a result of Law enforcement
• Illegal activities performed by the insured

There are two sides of the business insurance claim process:

1. Responsibility of the insured:

Notify the insurer of any accidents or any event which calls for a claim as soon as possible.

• If there is any crime like vandalism, the law enforcement team needs to be informed.
• After contacting the necessary bodies, the insured should follow up regularly with the insurer.

2. Responsibility of the insurer:

• An adjuster from the insurance company investigates the claim.
• If the claim is found genuine then the adjuster checks the policy terms and conditions.
• If the insured is eligible to get the claim, the amount is paid.

Documents Required for Claim Process

Whenever there is an eventuality, you need to immediately contact the insurance company to make claims. You should keep in place the required documents to avoid any delay or rejection. Here are some of the documents; however, the list of documents changes for different insurance plans.

• Duly filled in claim forms
• A picture or record of the event. This will help to substantiate the facts which have been mentioned in the claim application
• Police reports, as per the need and type of insurance

Time Taken to Settle the Claims

Usually, the insurance company settles the claim within 30 days of receipt of the application. However, the duration varies for different companies.

Important Aspects

Business owners can apply for the compensation only if:

• There is an actual loss of business income.
• There is a suspension of activities due to the mishap.
• Need to make critical repairs as soon as possible. As the insurer will need to know the repairing costs and will also ask for proper evidence.
• Business owners need to inform the insurer about all aspects of the business. If any fact is not disclosed, it might invalidate the cover.
• If the damage is caused due to lack of maintenance, the claim might be rejected.

FAQ’S

Q1. How is the premium for business insurance calculated?

Q2. Are imported or exported goods covered under business insurance?

Q3. Can business insurance help if a business owner dies or becomes disabled?

Q4. What is the difference between claims-made coverage and prior acts coverage?

Q5. What is BOP?

Q6. What is the significance of claim history?

Q7. What do I need to know about Business Insurance?

Q8. How premium is calculated in business insurance policy?

Q10. Can we cover exported and imported goods?

Q11.What can I ensure my business premises against?

Q.12. What triggers a Business Interruption Insurance policy?