Even businesses need security like life and health - how can it be protected, decodes expert - know details here

By - Nainoor Desai, Senior Vice President & Business Head - Corporate at Liberty General Insurance

Just like individuals insure themselves against financial burdens resulting from uncertain events, businesses also need to protect themselves against commercial risks. Commercial insurance secures businesses from financial losses arising due to an adverse event. It enables businesses to run their operations smoothly despite the disruption.

What is commercial insurance?

Commercial insurance is an insurance policy that aims to cover the losses occurring during business operations. Depending on the type of business, etc., there are different and specific inherent operational risks that a policy covers. The policy mitigates the financial losses resulting from the adverse event. Commercial insurance also offers protection from lawsuits, even where the company or its employees are found culpable.

Different types of commercial insurance products

Commercial insurance varies depending on the nature of business. There are different insurance policies covering specific risks a company might be exposed to:

Liberty General Insurance, one of India’s foremost general insurance companies, provides the following under commercial insurance:

Protection against exceptional liability: Liability insurance offers cover for any loss arising from litigation against the insured business. The policy covers litigation brought on by clients or the general public for any negligence, injury, or malpractice. The policy aims at safeguarding organizational interests, covers industrial risks, and also protects your employees.

Securing marine cargo: It covers the financial loss or damages to marine cargo during transit. It protects both the cargo owner and the consignment and covers activities during loading or while sailing enroute to the destination.

Engineering risk: Engineering insurance refers to safeguards against risks faced by construction projects. The policy insures all the installation and erection activities and covers the machines and equipment. Engineering insurance offers a wide range of policies, such as:

Erection all risk insurance policy

Machine breakdown insurance policy

Boiler pressure plant insurance policy

Commercial property: Policies here protect commercial property from perils, including fire, theft, and natural disaster. Some of the prominent types of policies, include:

Standard fire special peril cover

Fire loss of profit insurance policy

Industrial risk insurance policy

Miscellaneous Insurance: There are various policies that cover specific types of risk, for instance;

All risk insurance policy

Signage insurance policy

Fidelity insurance policy

Employee compensation insurance: Compensation insurance provides the employer with financial cover for any compensation-related claims from employees under relevant statutes. 

(Disclaimer: The views/suggestions/advices expressed here in this article is solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)