Commercial Insurance
Commercial Insurance is a type of business insurance that provides financial security to the industrial sector of our economy. It is extended from a small shopkeeper to big industrialists of the town.... It is like a safety net to protect your assets, physical location and intellectual property of the businesses from any unforeseen circumstances covered under the terms and conditions of the commercial insurance policy. It could be coverage for an office, shop, mall, factory or even a commercial vehicle. Being a business owner one should understand the value of commercial insurance and the benefits that they can have if they possess it.
Need of Commercial Insurance
- Reducing the risk: Every business person keeps assessing the risk involved at every stage in their businesses. The commercial insurance can help you in protecting at least your assets from any kind of loss.
- Protection: Commercial insurance can protect you from fire, theft or partial damage to any kind of asset, thereby saving you big bucks.
- Cost effective: As you all know buying a policy means you are reliving your pocket and saving your hard-earned money. The premiums are according to the risk-bearing factors of your business. But it is generally not as high as the cost of buying a new asset altogether.
- Gives you peace of Mind: whenever any business owner knows he is covered for any financial crises, the peace of mind and operating in a better way keeps them motivated for better work.
- Makes you better than others: If you are planning to buy or have already bought the Property Insurance: One of the most common types of commercial insurance that almost every business owner opts for. It can save your property from any type of damage, theft, fire or any other natural calamity.
After understanding the need of buying a commercial insurance policy, one should keep certain considerations in mind.
- Analyzing the risk involved (Know what you need): The first and foremost thing is to analyze the risks involved while planning to buy the commercial insurance policy. A clear assessment can give you clarity about what all should be insured and how much to put in the policy that can cut you from losses.
- Do cover your valuables (Know what is covered): Each office or shop has some valuables that are crucial for its smooth running. While buying a commercial insurance plan, select the type of policy that can safeguard all your valuable assets. Even you cover any expensive artwork or antiques that you have placed in your office premises.
- Fulfill all the Insurance Obligations: There are certain business insurance plans that are compulsory for every business owner to buy. Try to invest in those plans for you to avoid any unnecessary legal actions that can cause you a fortune.
- Self Coverage: Whenever you plan to insure your business through commercial insurance, always buy an insurance plan yourself also as you are the one without whom the business cannot survive. This is mostly in case of start-ups or small businesses where the proprietor is the sole owner and runs all the necessary work of the office.
- Adequately insured(Know how much you have to cover): Make sure you are not underinsured and at the time of adversity you are unable to cover your losses. Correct estimation of your asset value is compulsory along with a regular check on their depreciation.
Once all the important points are in your mind for buying an insurance policy, let’s have a look at the different types of policies that are available and you can choose the best or a combination that serves all your needs.
- Liability Insurance: In short, it is a commercial insurance plan that covers you against third party physical injuries or property damage. Also, any type of legal fees is covered under such a policy which otherwise falls on the shoulders of the owner. Whether you carry your business operations from a commercial space or from your house, general liability insurance can protect you from a lot of troubles and save a lot of money for your business. There are four types of liabilities cover
- General liability: Going by the title, it is a basic form of commercial insurance that shelters your business from any kind of liability incurred due to third-party damage or property damage. Also, any type of legal fees is covered under such a policy which otherwise falls on the shoulders of the owner. Whether you carry your business operations from a commercial space or from your house, general liability insurance can protect you from a lot of troubles and save a lot of money for your business.
- Public liability: This type of insurance is suitable for big business owners who deal in shopping centers, malls, clubs,etc or where consumption of alcohol is permitted. Business owners think twice before buying this type of commercial plan as the premium is little high but if you are stuck in any legal matter, then the legal costs outnumber the premium. You have to note that in case of very high risk the insurance companies either refuse to do the policy or charge a hefty premium.
- Professional liability: This type of insurance is suitable for professionals such as doctors, architects, engineers, chartered accountants or lawyers. The policy covers them against any legal issue arising due to professional negligence or errors.
- Commercial umbrella insurance: any business which is at the risk of exceeding its existing liabilities policies, opts for commercial umbrella policy which provides more benefits. It is a risk management system in which greater the risk, bigger is the requirement of buying the umbrella plan. This type of plan covers product liability, reputational loss, accidents by vehicles. It is more like a top up plan for general liability, commercial auto insurance or workers compensation insurance.
- Property Insurance: Almost every business owner chooses property insurance as a form of commercial insurance. It can save your property from any type of damage, theft, fire or any other natural calamity.
- Shopkeeper’s insurance: As the name says, this type of commercial insurance saves you from theft or burglary of cash or signboards missing, or any stock missing. The shopkeeper can have a peace of mind if he opts for this one. This type is suitable for small businesses or medium-sized business owners.
- Marine insurance: Insurance policies that cover marine cargo risks for industries as diverse as oil and gas, power generation, wind power, paper and pulp, steel mills, infrastructure and machinery upgrades.
- Directors and officers liability insurance: This type of insurance is for those at the directorial positions or holding an office of position where they can be alleged for wrongful acts, mismanagement or breach of duty during their tenure.
- Workmen compensation: This is a type of compensation package that a company takes for its employees in case of physical injuries due to an accident on a workplace or the worker suffers from partial or permanent disability. This commercial insurance type is mostly taken by factory owners or those in construction business as these types of accidents happen frequently at such sights.
- Cyber Insurance: In this world of digitization, cyber frauds happen daily and with a higher frequency. This policy protects your business from cyber crimes as the selling on facebook and instagram is very common these days and hacking is even more basic. All those who work through websites or any other online portal like google apps, it is very important for them to get their business insured with this type of commercial insurance.
- Commercial auto insurance: Last but not the least is commercial auto insurance. One of the crucial insurance for restaurant owners, logistics or even any other business dealing with delivery systems. This type of commercial insurance provides a comprehensive package for both public and private carriers. A driver’s accident and loss of property due to an accident on duty is one of the salient features. Moreover , third-party vehicles are also safeguarded.
According to the nature of your business, you can opt for any of the above mentioned types of commercial insurance for saving your business from fraud, theft, damage or any kind of loss. As the post-pandemic period has become very difficult for businesses, the owners should start planning so that the future of their businesses can be secured without creating a big whole in the pocket. There are various top brands offering a comprehensive policy. Before thinking twice, quickly research the best-suited plans for your business and invest in one with just one click at okbims.com. We are there to assist you 24*7*365 days to help you in solving all your queries related to commercial insurance.
FAQ
What is the amount required for commercial vehicle insurance?
The IDV of a commercial vehicle is frequently insured. IDV is the ex-showroom price of the automobile, excluding depreciation. If the car is stolen or otherwise damaged, we shall give the insured with vehicle's IDV. Keep in mind that depreciation can drastically affect the vehicle's IDV. You can choose the return to invoice add-on if you want to exclude depreciation from the calculation. This ensures that your vehicle is insured up to the current listing price in the event of theft or damage resulting in total loss.
What types of hazards are covered by a third-party insurance policy?
This Third-Party policy covers the following risks:
Legal protection
A third-party death or injury.
Third-party property damage
Is it possible to renew my commercial vehicle insurance policy?
Yes, we provide the option to renew the commercial p=vehicle policy either online or offline.
What is an insurance No Claim Bonus (NCB)?
If you do not file a claim against your insurance policy throughout the period of coverage, you will be eligible for a discount when it comes time to renew your policy. No Claim Bonus, or NCB, is the name for this reduction.
Every claim-free year after that, your NCB discount grows. As a result, NCB discounts might range anywhere from 20% to 50%. This NCB discount, however, may be totally reversed after you file a claim. The policyholder, not the vehicle, is normally the recipient of the NCB. As a result, when you buy a new automobile, your NCB will be transferred to the new vehicle's insurance policy.
What does the term "deductible" mean?
Prior to the insurance company providing compensation for a claim, the insured must pay a portion of the claim out of pocket. The deductible or excess amount is determined by the type of vehicle you own. The deductible amount for two-wheeler owners starts at Rs. 50, while the base deductible for private cars and commercial vehicles is Rs. 500. The deductible amount is determined by the vehicle's cubic capacity/carrying capacity. The greater the vehicle's cubic capacity, the higher the deductible amount. It may also occur if the car is too old or the policyholder's claim frequency is excessive.
Is there a service tax on business vehicle insurance, and if so, how much?
The service tax that applies to business vehicle insurance is determined by existing law.
My address has shifted. How can I change my policy documentation with my new address?
If any of the policyholder's personal information changes, the policyholder must notify us. They can do this by sending us a letter that includes proof of the changes. We will take the necessary steps to implement the adjustments after checking the proof. We may also ask you to pay an additional premium to upgrade your policy in specific situations.
Is it Possible for My Insurance to Be Transferred?
Yes, you can transfer your commercial insurance policy. You must notifyus in writing to do so. We will request that you fill out a new proposal form and charge a fee to complete the move. The no-claim bonus from the date of transfer to the policy expiry date is carried forward with the vehicle insurance transfer. However, you must transfer your insurance within 14 days after transferring your vehicle registration, otherwise you will be unable to make any claims.
Are there any requirements for cancelling an insurance before it expires?
The following two conditions allow you to cancel your auto insurance before it expires:
The insured has switched insurance firms.
The insured's automobile has been sold.
Is it necessary for the owner of a commercial vehicle to pay tax even if the vehicle is not on the road?
No, a commercial vehicle owner can claim tax relief for the time his or her vehicle was off the road. For this, he or she must contact the transportation department to learn more about the process, as each state has its own procedure for obtaining tax exemption.
What should a policyholder do if his vehicle is stolen and his original policy is also lost?
The policyholder should first notify the police and the RTO where the car was registered. The policyholder must next notify us and request a duplicate copy of the insurance policy.
After that, the policyholder can start the claim filing process. An FIR and a letter from the RTO acknowledging the theft will be required. After the claim is filed, an investigator will be assigned to track for the missing car. We will provide the insured a claim payment based on the findings of the investigations. During the claim settlement procedure, more papers may be required.
