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What is Startup Insurance?
Startup insurance refers to insurance coverage specifically designed to protect the financial interests of start-ups and small businesses. Start-up insurance covers business losses and damages from various risks such as natural calamities, liability from third parties, property damage and financial loss. Some common types of start-up insurance are general liability insurance which protects the start-up owners against third-party liability and lawsuits due to third-party property damage and bodily injury, and property insurance which protects start-up businesses against man-made as well as Act of God perils.
Types of Startup Business Insurance Policies in India
There are various types of start-up insurance plans in India, of which the three most essential plans are discussed below:
Commercial General Liability Insurance (CGL)
Commercial general liability insurance protects the policyholder against legal issues arising from accidents resulting in bodily injury or property damage to third parties caused by the insured’s operations or at the insured’s premises. The bodily injury and property damage could be due to customers falling, tripping, slipping on your premises and sustaining injuries. Commercial general liability provides financial compensation to the injured individuals on behalf of the insurance company. For whom the insurer is legally responsible.
Coverage & Highlights:
- Bodily injury and property damage of third parties
- Personal and advertising injury includes intentional or unintentional use of copyrights of some other company. This can also be extended to include slander or libel, causing indirect harm to the reputation of a third party.
- Medical expenses of third parties due to bodily injury at the insured’s premises or arising from insured’s negligence.
- Cover for products completed operations hazard
- Extended medical expenses coverage
- Premises liability which includes damage to the premises rented by the insured.
- Operations liability which includes accidental pollution liability
- Products liability includes losses or damages to third parties resulting from using the product.
- Duty to defend form
- Defense costs apart from the damages incurred.
Exclusions:
- Expected or intended injury under which the insured expects or intends the damage or loss. This does not include the bodily injury resulting from using adequate force to protect property.
- Employer’s liability does not cover the employer’s liability towards the bodily injury of the employees performing duties related to the employee’s business.
- Intoxication liability doesn’t cover injuries to the body or property caused by intoxication.
- Liability for pollution that results in injuries to the body or property due to alleged or actual discharge pollutants or contaminants that are released by any point in the property or premises of the insured.
- Damage to the insured’s own property.
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 CGL insurance experts of Ethika insurance.
Step 2: The next step is to give the details of the home you want 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, period of insurance required etc., should be given to generate the best quote.
Step 3: Next step, pay and obtain a CGL insurance plan. Get the best CGL insurance quote now.
FAQs
Who should take the Commercial General Liability Policy?
Any business that runs the risk of facing legal claims from property damage or bodily injury to third parties can purchase the commercial general liability policy. The aggregate limit under the policy can be decided by the insured when taking the policy based on the turnover or any other factors.
Are the legal suit expenses covered under CGL?
Yes the legal expenses incurred by the insured to defend the suit are covered under the CGL policy in addition to the compensation payable to the aggrieved third parties.
Is Contractual liability covered under CGL policy?
No. Contractual liability is not covered under the CGL policy as it falls under the exclusions in the policy.
Is pollution related liability covered under CGL policy?
No. The pollution-related liability is not covered under the commercial general liability policy. The liability for pollution resulting from injuries to the body or property caused by alleged, actual discharge pollutants or contaminants released at any point in the property or premises of the insured.
Property Content Insurance
Coverage & Highlights:
- Fire, explosion & implosions, Lightning.
- STFI, RSMD, Earthquake and Volcanic eruption.
- 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 is insured.
- Personal accident insurance for owners and maids.
- Expenses for alternate accommodation.
- Loss of Jewelry, Gold, and 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 built up ground, faulty design or workmanship, or the using defective raw materials.
- War and allied perils.
- Damage or destruction to the property due to its own fermentation or natural heating and spontaneous combustion.
- Damage or destruction caused due to any heating or drying process.
- Burning or destroying the home due to the orders of the 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 of Ethika insurance.
Step 2: The next step is to give the details of the startup property you want 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 property insurance policy. Get the best startup property insurance quote now.
FAQs
Can I buy start-up property insurance for my business if it is rented?
Yes, you can buy property insurance for your startup even if it is rented. The contents of your business can be insured in the case of rented premises.
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 content’s market value and the building’s reinstatement value. If the sum insured is higher, the premium will be paid.
What should be the sum insured under the startup property insurance?
The sum insured under initial property insurance is contingent on the covered property type. In the case of contents, the sum insured would depend on the market value of the product, whereas in the case of buildings, the sum insured would depend on the reinstatement value of the property.
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.
Group Health Insurance for Startups
Group health insurance for start-ups is intended to cover the monetary expenses incurred by insured customers. Start-up business owners usually take group health insurance for their employees, or in certain cases, the cover would be extended to the family members of the employees.
Coverage & Highlights:
- Pre and post hospitalization expenses covered a certain number of days before and after the hospitalization.
- Pre-existing disease medical expenses are covered without any waiting period.
- Maternity expenses are covered over and above the basic sum insured.
- Newborn babies cover up to 90 days under the maternity sum insured or basic sum insured.
- Pre and post-natal expenses covered a certain limit under the maternity cover.
- In-patient hospitalization expenses, outpatient hospitalization expenses, and day care hospitalization expenses.
- Ambulance charges up to a certain amount per hospitalization
- Organ donor costs for morgan transplants, such as harvesting organs are covered.
- Daily hospital cash cover up to a certain number of days per hospitalization
- Critical illness covers over and above the base sum insured, payable after the diagnosis report is shared with the company.
- Room rent and nursing charges up to a certain limit as specified under the plan.
- No medical screening is required for taking the group health insurance plan.
- Options for installment premium payments to pay the premium that is to be compensated under the health insurance policy for group members.
- Covid-19-related hospitalization expenses are covered up to the mentioned limit.
- Accidental hospitalization expenses up to the sum insured limit.
Exclusions:
- HIV/AIDS and related conditions
- Alcohol or drugs related conditions
- Suicide attempt or intentional self injury
- Congenital diseases
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 would receive a call from the Group health insurance experts of 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 employees such as age, employee code, gender of the employees, Sum insured, period 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 Group Health insurance policy. Get the best Group health insurance quote now.
FAQs
What is the corporate buffer in Group health insurance?
A corporate buffer is the extra sum insured the insurance company provides to the insured on payment of an additional premium. The corporate pad can be assigned to any of the employees after their sum insured gets exhausted. The decision to allocate the corporate buffer sum insured to the employees depends on the insured.
What are the minimum requirements to take Group health insurance?
The minimum number of lives to avail of group health insurance is 7 for most insurance companies. Any start-up having at least 7 employees can take the group health insurance policy. There is no limit on the minimum and maximum sum insured that can be availed under the group health insurance plan.
How to get the best group health insurance premium?
The best group health insurance premiums can be availed when the policy is taken from insurance brokers. Insurance brokers have tie-ups with many insurance companies, which gives the start-up business owner an advantage to negotiate with insurance companies which the insurance broker would do.
Is it compulsory for startups to take group health insurance?
No, start-ups don’t need to take group health insurance. But start-up companies should take the group health insurance policy to provide health insurance coverage for their employees which would boost the motivation of the employees.
Top Startup Business Insurance Plans India in 2023
| Plan | TATA AIG | HDFC ERGO | BAJAJ ALLIANZ | ICICI LOMBARD |
| Name | Commercial General Liability | Commercial General Liability | Commercial General Liability | Commercial General Liability |
| Bodily injury and personal damage | Covered | Covered | Covered | Covered |
| Personal and Advertising injury | Covered | Covered | Covered | Covered |
| Medical expenses | Covered | Covered | Covered | Covered |
| Customer’s premises liability | Covered | Covered | Covered | Covered |
| Operations liability | Covered | Covered | Covered | Covered |
| Products liability | Covered | Covered | Covered | Covered |
| Defense costs | Covered | Covered | Covered | Covered |
| Pollution | Not covered | Not covered | Not covered | Not covered |
| Expected or Intended injury | Not covered | Not covered | Not covered | Not covered |
| Contractual Liability | Not covered | Not covered | Not covered | Not covered |
