| Matching business insurance needs to particular | | | | shipment of business goods and even some |
| products is not always straightforward; especially | | | | personal items.b) Provisions for employees |
| with the range of products offered. Business | | | | Employee-related commercial policies consist of |
| owners should, therefore, be aware of the broad | | | | group life, health and disability insurance. Group |
| spectrum of risk-reducing products available if | | | | pension plans can also be grouped with these. |
| they are to protect their businesses suitably and | | | | Other critical provisions for employees include key |
| comprehensively from risks and liabilities. | | | | person life insurance (insures against disability or |
| It is easy to get overwhelmed with the vast | | | | death of an important person in the business), |
| options available. However, your business | | | | workman's compensation (benefits for |
| insurance needs generally exist in three | | | | dependents/ insured worker in the event of |
| categories:a) Protection of assets and revenueb) | | | | death/ disability) and travel insurance (insured |
| Provisions for employeesc) Liability coveragea) | | | | person on business-related trips).c) Liability |
| Assets and revenue coverage | | | | coverage |
| Protection of assets and revenue consists of | | | | Businesses or their owners can be held liable for |
| myriad types of insurance products. Some of | | | | anything from accidents on premises to faulty |
| these products are general or basic while others | | | | products. General liability policies exist to cover all |
| are highly specialized.i) Commercial property | | | | liability risks. The three Ps of liability risks include:i) |
| coverageii) Casualty coverageiii) Commercial | | | | Public liability- covers third party accidents/ death, |
| vehicles coverageiv) Marine coverage | | | | damage or economic loss that arises primarily out |
| Commercial property insurance involves all forms | | | | of negligence (primarily), defamation, nuisance and |
| of insurance that protect premises, stock in trade, | | | | trespass.ii) Professional liability- this covers any |
| fixtures & fittings and plant & | | | | claims arising from professional errors, oversight, |
| machinery- to name a few. It includes specialised | | | | breach of duty and malpractice. The distinction |
| forms of coverage like fire or explosion insurance. | | | | here is that it covers legal claims from clients as a |
| Commercial property insurance can protect | | | | result of the conduct of business. Directors and |
| against a variety of perils (natural and social perils | | | | company officers may have special liability policies |
| for instance). Businesses have the option of | | | | to cover their actions in their conduct of business |
| insuring against certain perils in a named-perils | | | | affairs.iii)Product liability- this insures against third |
| policy or have an all-risk policy (with limited | | | | party claims for damage to property and |
| exclusions). | | | | accidental injury arising from the use of defective |
| Casualty insurance protects business revenue and | | | | goods or even poor service. |
| business operations (continuity). Whereas property | | | | Umbrella policies are a form of additional liability |
| insurance is concerned with assets, casualty | | | | coverage that covers claims above the level of |
| protection deals with anything that affects | | | | cover provided by basic liability policies. |
| revenue. Sometimes the two are related- hence | | | | For small business owners, specialized policies may |
| they sometime come under an amalgamated | | | | not be feasible. For this reason, there exists a |
| "Property & Casualty" policy or have some | | | | Business Owner's Policy. This general business |
| degree of overlap. Casualty insurance can insure | | | | policy is designed for small businesses and offers |
| tangibles that affect business operations like | | | | limited coverage against certain a broad spectrum |
| damage to glass and burglary. Its coverage can | | | | of perils and liabilities. Apart from small businesses, |
| also extend to identity theft, employee theft, | | | | the needs of a home-based business owner may |
| surety bonds (for contract default), floods, | | | | be different and certain aspects of a commercial |
| terrorism and loss of business as a result of | | | | policy may not be applicable (especially as it |
| political instability. | | | | relates to premises). |
| Commercial auto insurance and marine coverage | | | | Given the existence of general and specific |
| are considered as features of property insurance, | | | | business policies in all categories, it is necessary to |
| but are typically highly specialized forms of | | | | ensure that the policies that you choose best suit |
| coverage that can be purchased on a separate | | | | your business needs. Generally, location, size and |
| plan. Vehicles used for business purposes (and are | | | | the nature of the business are major |
| registered under the business name) can be | | | | determinants of what type of policy is required. |
| insured under this policy. Coverage provided is | | | | Large enterprises typically have robust business |
| similar to personal auto insurance. Marine | | | | insurance policies covering assets & revenue, |
| coverage, which is broad in scope, covers | | | | employees and liability risks. |