What is Meant by Business Insurance?
A cover by business insurance will guard businesses against losses due to events that may happen during the regular course of business. There are many different types of insurance for businesses. It includes coverage for property damage, legal battles and employee-align risks.
Types of Business Insurance
The various types of business insurance are as follows:
(1)Professional accountability Insurance
Professional accountability insurance is to be insured against claims of carelessness ensue from errors or failure to perform.
(2)Property Insurance
In the event of a storm, fire, or theft, property insurance will cover apparatus, signage, inventory, and furniture
(3)Home-Based Insurance
Homeowner’s policies do not cover businesses based at home, such as commercial property insurance
(4)Vehicle Insurance
All cars used for a business need full insurance. Businesses should insure against third-party injury.
Eligibility Criteria
Business insurance covers a wide range of big, small and start-up businesses. Most of the financial organisation 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
Business Insurance Functions
After buying a business insurance, your next step should be to understand the work of the insurance so that you can make claims, in case of any unexpected incident. Let us see how it functions.
- Apply for the business insurance
- Insurer checks the appropriate of the business for the insurance
- The premium is calculated based on the business size, revenue generated by the company
- The business pays the premium as per the contract
- In case of any unpredicted event, the business applies for the claim amount
- The insurance company verify the claim
- In case the claim proves to be authentic, the insurance company settles the claim by paying the amount; else rejects the claim