Commercial business insurance provides protection for companies and organisations. It is usually created to protect the company, its employees and its owners. There are so many different kinds of companies, each with unique requirements and circumstances, due to which commercial insurance comes in a wide variety of forms and sizes.
What do you mean by commercial insurance?
A policy that is designed to shield a company from potential dangers is referred to as commercial insurance. Damage to company property, money lost as a result of a business disruption, legal problems, theft, and employee complaints may all be covered.
Types of commercial insurance
Commercial insurance, as opposed to personal insurance, can protect numerous stakeholders and personnel. In addition, because there is often more tangible property at risk, commercial insurance has a tendency to have far higher coverage limits than personal insurance.
Here are the different types of commercial insurance available:
- Public liability insurance: Liability insurance protects the business when a claim arises from third-party injury or damage to property. Public liability insurance pays the legal expenses for which the company or insured could be held liable. *
- Directors & office liability insurance: Directors of a company generally get coverage through this insurance for their liability arising from wrongful actions during their professional tenure. *
- Shop owners’ insurance: This policy covers all the possible risks and damages faced by small, medium-sized (SME) shop owners. *
- Fire insurance: Insurance that covers damages or loss due to the outburst of fire. *
- Burglary insurance: This insurance covers loss or damage to the said insured property due to burglary and housebreaking. *
- Office package policy: A comprehensive insurance package to cover one’s business. This insurance offers coverage for fire, burglary, machinery breakdown etc., under a single roof. *
- Marine insurance: Marine insurance could be termed as a type of insurance extended for marine industries, where the insurer covers against the loss due to any maritime perils or causalities in the sea, including fire, war, pirates and other disasters. You can review different types of marine insurance to make an informed decision. *
- Construction’s all-risk insurance: This policy offers extensive coverage against loss during construction, contract work, construction machinery etc. It may provide coverage to architects, financers, and construction engineers. *
- Erection all risk insurance: This policy provides comprehensive coverage against loss or damage to the installation of machinery or equipment. *
- Plant & machinery insurance: The policy covers damage or loss to the contractor’s construction machinery, such as excavators, cranes, compressors, etc. *
- Workmen compensation insurance: Workmen compensation insurance policy covers the employer during a statutory liability arising from death or injuries caused to the workers during employment. *
- Business insurance: Business insurance protects a business from financial loss due to property damage, fire, natural disasters, theft or legal liabilities. *
- General liability insurance: General liability insurance pays for the liability claims arising from bodily injury and moral damage to a third party within the business premises. *
- Public liability insurance: Similar to general insurance, Public Liability insurance also bears those liability expenses arising from third-party bodily injury or property damage within the premises. *
- Comprehensive general liability insurance: The policy covers all the expenses, which the insured or the employer can be held responsible for paying for damages as an outcome of an accidental misfortunate event, bodily injury, disability to the third party or third-party property damage. *
- Cargo insurance: This policy provides coverage for organisations dealing in the cargo business. It offers wide coverage against loss or damage caused to the cargo while in shipment between any two points by air/rail/road/train/or courier. *
- Transit insurance: This policy covers the risks associated with the transit of goods and merchandise. It covers your business for loss or damage of cargo while transiting. *
- Cyber insurance: Cyber insurance policies help businesses overcome the effects of cybercrimes like ransomware, malware, distributed denial-of-service (DDoS) attacks etc., that may be used to compromise a network and confidential information. It can also be termed as security insurance or cyber risk insurance; these products especially provide coverage and help organisations mitigate specific cyber risks. *
These are various types of commercial insurance that small business owners may consider.
‘Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale. ‘