The ultimate motive of any business is to earn profits, but not all organisations manage to achieve. Some entities succeed, whereas some others fail. All entities face various types of risk. It depends on the industry they operate and scale of operations.
Business risks are of various types – natural calamities like earthquakes, fires, floods or even man-made ones like labour strikes and lawsuits. The higher management must be prepared to tackle these kinds of risk. If ignored, these risks can hamper the growth and affect the profitability of the organisation. Using a commercial insurance policy, you can tackle these forms of emergencies efficiently and proactively.Â
Let us look at the various types of commercial insurance plans that can be purchased to protect from the different liabilities that may arise –
Property insurance
Property is a critical part of any business. The different types of properties can be used for various purposes like housing your staff, warehousing, and more. Whether your organisation operates in a service industry or a product industry, having space or property is crucial. Any damages to this space can mean disruption of the business activities. Thus, to prevent unwarranted disruptions, it is advisable to opt for property insurance.
Marine Insurance
Imports and exports are majorly transported using water as a medium. It is a cheaper and economical form of ensuring your goods reach from the place of origin to its destination. Thus, there is an ever-increasing demand for logistic services that use the water as a medium for transportation which in turn gave rise to the demand for marine insurance. As there are risks in other forms of transportation, so is the case for marine transport. Growing threats of piracy, handling errors during loading and unloading makes marine insurance not only essential, but also a must-have in today’s day and age.Â
Liability InsuranceÂ
Liability insurance comes into picture when your product causes injury or harm to the buyer. This may result in a lawsuit filed against your organisation. Liability insurance can act as a financial safeguard for your organisation to prevent these liabilities. It further is specific to your needs and is divided into product liability insurance, public liability insurance, product recall insurance, clinical trials insurance, workmen’s compensation insurance and professional liability insurance.Â
Financial lines insurance
Financial insurance cover offers protection to the business owners against the suits filed by the employees against the employers. This policy is customisable according to the nuances of industry and nature of business.
Engineering insurance
Engineering and construction companies are exposed to unique and specific types of risk. An engineering insurance policy is the one that protects your organisation’s financial interest from the industry-specific risk regarding the machinery at its installation or operation to avoid business interruption.Â
Employee benefit insurance
As a responsible employer, you would want to honour the employee benefits in time. But paying for employee benefits can strain your financial resources since the amounts are huge and lump sum. Thus, purchasing an employee benefit issuance ensures there is no disruption of cash flow for the business.
Every business has a certain degree of risk. Instead of merely assuming the entire risk, it is advisable to take a calculated risk and insure yourself using these varied types of policies. Thus, make sure you avail the necessary insurance plans to avoid any financial setbacks and disruption of your operations.
