Business Insurance Plans in India 2023

What is Business Insurance?

Business insurance plan is one type of insurance that offers coverage to businesses for covered perils. Business insurance would cover the damages or losses to the property from insured perils and protects from third-party damages and legal expenses. All organizations can take business insurance to safeguard their interests and provide them with financial compensation in case of loss or damage. Business insurance also covers the loss or damages to third parties due to willful negligence or unfortunate accidents. In short, business insurance protects the damage to property, legal liability, employee associated risks.

Types of Business Insurance Policies in India:

Business insurance in India aims to provide comprehensive insurance coverage to businesses. 4 types of insurance coverage can be offered to businesses: property insurance, Professional and Product liability insurance and Business Interruption Insurance.

Property Insurance

Coverage & Highlights: 

• Fire, explosion & implosions, Lightning.
• STFI, RSMD, Earthquake and Volcanic eruption.
• The bursting of overhand tanks, apparatus and leakage of sprinkler installation.
• Theft and Burglary.
•  Damage to portable electronic items such as phones, laptops, etc.
• Accidental damage due to external accidents or during transit. 
• The breakdown can be electrical or mechanical. The equipment that is insured.
• Personal accident insurance for owners and maids. 
• Expenses for alternate accommodation.
• Loss of Jewelry, Gold, Silver items. 

Exclusions: 

• Damage is caused to the home due to industrial boilers or other industrial equipment. 
• Damage caused due to the home due to demolition, repair or structural alterations as a part of the renovations. 
• River or coastal erosion settlement or movement of the built-up ground, faulty design or workmanship, or using defective raw materials. 
• Conflict and the dangers of allied conflict. 
• The property is damaged or destroyed due to its own natural fermentation or combustion and heating. 
• The destruction or damage caused by any drying or heating process. 
• Destruction or burning of the house in accordance with the directives from Public Authority. 

Steps to Buy: 

Step 1: The first step is to visit the webpage of Ethika insurance broking and click on the get quote option. This will redirect you to enter the basic details, after which you will receive a call from the renter’s insurance experts at Ethika insurance. 

Step 2: The next step is to give the details of your home you are willing to insure. Details of the insured such as contact details, name, occupation etc, Details of the property such as Address of the property, Market value /Sum insured, number of years of insurance required etc. should be given to generate the best quote. 

Step 3: The next step is to make the payment and get the renter’s home insurance policy. Get the best property insurance quote now.

FAQs

Can I buy property insurance for my business if it is rented?

Yes. Property insurance can cover the building and any contents belonging to the company. If you own the building and the content of the business, then you can take insurance for both. If you rent the building, you can take the content insurance only.

How is the premium calculated in business property insurance?

The premium for business property insurance is determined based on the amount of insurance chosen. The Sum insured can be calculated based on the market value for the content and reinstatement value for the building. The higher the amount insured, the higher the premium to be paid.

What happens to the insurance if the business is sold?

The insurance policy should be changed in the new owner’s name as the insurance interest ceases to exist after the business is sold to the new owner. The new owner should take appropriate insurance for the property.

Also Read: Top 20 Reasons You Must Invest in Group Health Insurance for Small Businesses

Professional Liability Insurance

Coverage & Highlights: 

• The policy covers the insured against damages to third parties due to errors and omissions while providing them professional services. 
• The policy covers the claims arising from negligence services of advice a business provides to clients. 
• It covers the legal expenses and costs incurred to fight the cases against the businesses with the prior approval of the insurance company.
• This policy covers the loss or damage to the third-party property or person while rendering services. 
• The policy covers the professional liability of Doctors, Architects, Lawyers, etc. 

Exclusions: The policy would not cover the following:

• All criminal acts include fines and penalties, including penalties, punitive damages, triple damages, or other damages resulting from multiplying or over-compensation damages.
• Professional services are rendered under the influence of alcohol or narcotics.
• The loss results from professional services provided by the insured in the name of their spouse or for any other members of the insured’s family.
• Conflict, Terrorism, Nuclear explosion and contract responsibility. 
• Bodily injury, sickness death, injury to property, consequential financial loss, unless caused by an error, defect or inadvertent plan or recommendation.

Buying Guide: 

Step 1: The first step is to visit the webpage of Ethika insurance broking and click on the get quote option. This will redirect you to enter the basic details after which you would receive a call from the PI business insurance experts of Ethika insurance. 

Step 2: The next step is to give the details of the business you want to insure. Details of the insured include contact details, name, occupation, etc. Details of the property, such as the Address of the property, Sum insured, years of insurance required, etc. should be given to generate the best quote.

Step 3: Next step, pay the bill and obtain the policy. Find the most competitive professional Indemnity Business policy today.

FAQs:

How can the sum insured be decided under the PI policy?

The Sum insured under the policy should be decided by the insured, keeping in mind the future claims arising from the professional services. The Sum insured can also be determined based on the statutory requirements or size of the firm or the turnover or the profits. For more information, please talk to our expert at Ethika insurance broking.

What is the AOA & AOY?

AOA is any single accident, and AOY refers to any one year. AOA is the maximum claim payable per accident during the policy period, whereas AOY is the whole claim paid during a year. The ratio of AOA: AOY shall generally be at most 1:4 in most cases.

When can the claim be communicated under PI policy?

The claim should be communicated to the insurance company in writing immediately after the insured’s knowledge. Only those cases made in writing would be considered and deemed to be first made when the insurance company first receives the written notice.

Does the policy pay legal fees and expenses?

The policy pays for the legal fees and expenses incurred by the insured to fight the litigations due to a deficiency in the services provided by the insured. These would be available with the prior consent of the insurance company.

Business Interruption Insurance/ Consequential Fire Loss of Profit

Business interruption happens when there is a loss or damage to the insured premises due to any of the named perils acting at the time of the accident. Business interruption can result in financial loss as well as psychological loss. The financial loss is caused by the loss of profits that would have been made without damages. Business interruption insurance, also known as consequential fire loss of profit insurance, covers the insured and businesses against any financial loss in the form of loss of profits arising out of the occurrence of any of the insured peril.

Business interruption insurance only pays the loss of profits until the business is repaired and back in working condition. The policy also covers the extra cost incurred by the businesses in the form of working costs due to the event’s occurrence. The policy can also be extended to the supplier’s and customer’s premises, as well as the losses arising from power or water and gas failure to the insured’s business.

Coverage & Highlights: 

• The policy covers the insured and the business against any loss or damage in respect of the loss of gross profits or loss of income. 
• The policy also covers operating expenses like electricity and rent that continue even after the business is interrupted due to an insured peril. 
• The policy also covers the increased cost of working. 
• There are specific add-on covers such as damage to the supplier’s premises, damage to the customer’s premises and losses due to gas, water or power supply failure. 

Exclusions:

• War and nuclear perils.
• Loss of market share 
• Third-party claims arising out of a loss to the business
• Loss of goodwill 
• Fines and penalties 

Buying Guide:

Step 1: The first step is to visit the webpage of Ethika insurance broking and click on the 

get quote option. This will redirect you to enter the basic details after which you would receive a call from the business interruption insurance experts of Ethika insurance. 

Step 2: The next step is to give the details of the business you want to insure. Details of the insured include contact details, name, occupation, etc. Details of the property, such as the Address of the property, Sum insured, years of insurance required, etc. should be given to generate the best quote. 

Step 3: The next thing to do is pay the bill and obtain the policy. Find the most competitive business interruption insurance quote today.

FAQs

Who can take Business interruption insurance?

Anyone in business can take business interruption insurance having a business. There is no limit on the turnover of businesses eligible for business interruption insurance.

Is BI indemnity or benefit-based policy?

Business interruption insurance is an indemnity-based policy in which the claim would be settled as per the limit incurred. The benefit-based policy is when the entire Sum insured is settled to the insured irrespective of the claim amount.

How to decide the LOI in BI insurance?

The indemnity limit under the commercial insurance policy is the amount that is insured. The Sum insured opted by the insured when taking the policy would be the maximum limit of indemnity under the policy. The loss of profits would be compensated in addition to any covers taken by the insured.

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