Different type of insurance policies in India

A person who is not conversant regarding different type of insurance policies in India may confuse the functioning of two different insurance. For instance, for them, taking home insurance and a business insurance would seem almost the same thing. However, one must be vigilant enough to understand that insuring your business is definitely not similar to insuring your house. This is because every business is distinctive and certainly only a customized insurance package can meet your business requirements alongside providing highest level of protection at every instance of life. First and foremost, you need to comprehend the types of business insurance available in India that can provide good protection. There are two types of business insurance, namely, property and liability insurance.

Property insurance: As the name suggests, property insurance provides protection to the assets of your business (equipments, machines, building, etc) from unforeseen destruction or damage. Now, suppose your business is home-based then despite having a home insurance it would be advised to secure your business assets with a different contents insurance as home insurance is not liable to cover business tools.

Contents insurance:  This type of insurance is designed to provide protection to your business equipment in the event of damaging events like fire, flood, or burglary. In order to find out the extent of contents insurance needed, you would need to create a list of all your items and business assets mentioning their values in terms of Indian Rupees. Afterwards, you can make a decision about the assets that actually needs to be insured, and as per the value of the asset the insurance premium would be determined. In some cases, a particular asset is left uninsured as it does not justify the price of the premium. For some other assets, on the other hand, it would be worth to pay premium for ultimate protection. Some expensive equipment like computer if gets damaged accidentally or gets stolen would be difficult to replace them. Hence, it is always recommended to insure expensive equipments.

Liability insurance: This type of insurance is especially advised for small-sized business. However, it is beneficial for every business regardless of its size since it protects a business from any kind of legal action.

Employee insurance:  if you are concerned about the security of the employees of your company then get employee insurance.

General liability insurance: The motive of this particular insurance is to provide coverage to your business from responsibility arising from carelessness that can caused any kind of physical damage to others. For example, if someone gets physically injured while using any of your product or service then it will protect your business from any kind of legal liability. This is needed because all legal expenses and out of court settlement can push your business into sudden bankruptcy. Always make sure that your general liability insurance policy takes care of the product liability if you sell business goods. If this is not covered in your general liability insurance policy, you must include customized liability insurance to your package.

Professional liability insurance: Professionals like doctor, realtor, lawyer, etc must consider having professional liability insurance. For certain type of professionals, it is a mandatory insurance.

Small business may need some other types of business insurance such as business disability insurance, key person insurance and business interruption insurance. If, at the end of this article, knowing about all these insurance policies is making you more puzzled to buy health insurance or business insurance, it is better to make an appointment with an expert and professional insurance advisor or call the customer support of a reputed insurance broking company.