Buisness Health Insurance

When a person starts business, he is not aware of what is going to happen later in his business and what is going to happen with himself as well as his employees. The business as well as the human capital employed in the business is always at risk due to the various business processes. This situation calls for an insurance of business, as well as the insurance of the various employees of the business organization including the owner or the partners. This is what the ‘business health insurance’ means in the general sense. The business health insurance is important not only for the business heads, but for all the business relationships he is having. Now the question arises- what are the various kinds of insurance that are available for the business This we shall discuss in our next part.

Types of business insurance

The various types of insurance available in the business that helps to cover all the risks associated with it. These are:

Insurance of the Business Property: This is an important part of the business health insurance. It covers the insurance of the buildings at which the business is being carried out. Whether the property is owned one or a leased one, the insurance of the property is must. It helps to cover the risks arising out of various natural calamities like flood, earthquake etc, as well as the risks arising out of the acts of mankind like bomb explosion, fire breakout due to human fault etc. All these should be covered comprehensively in the insurance draft policy. Insurance of the property also includes insurance of the personal properties being used in the business like chairs, tables, cupboards besides all the other equipment being used in the business processes. All of these should be comprehensively covered against theft, fire, burglary etc so that all the risks pertaining to these are covered. In case, some future renovation is expected, it should also be covered under the insurance. It also includes all the other hardware and the software that are being used to carry out the business activity. The amount insured should be such that in case of the cessation of business due to any reason, the loss incurred is compensated. The main consideration while getting the business property insured from the business health insurance company should be the ‘loss of income’ resulting due to various apprehensive actions.

Liability Insurance: This type of insurance is designed to compensate the loss to the third parties. It is an important part of the overall business health insurance, as the concerned person or persons work for the betterment of the business and it is the duty of the organization to compensate all the losses to such persons. Also, if the property is rented one, the owner should be compensated for all the losses incurred.

This type of insurance invariably includes coverage for fire, personal and advertising injuries, medical expenses etc, besides including coverage for all types of malpractice, omissions and errors, as there are many types of professionals engaged in the business activities and the above insurance shall prevent it from any type of suit that may be filed against it. As the business processes include a lot of risks for such professionals, it is recommended that this type of insurance should be done at the time of commencement of business.

Workers Compensation Insurance: If the business has employees working for it, then it is mandatory for the organization to go for the ‘workers compensation insurance’. It is also recommended that the insurance should cover 100% risks, i.e., all the risks associated with the employees should be covered under such an insurance. This would help the business organization to prevent all the unseen expenses related to the claims from occurring, as the insurance company shall take care of all such needs and the business would not suffer any losses due to such acts. With the growth of business, the organization would be in the position to bargain a great deal with the insurance company owing to large number of employees and thus the insurance coverage area can be increased substantially. It would get some additional services also from the insurance company like risk management etc, which may be considered as value added services.

Excess Liability Coverage: This pertains to the liability of the business organization towards the acts that are not covered under the package of its employees. The insurance policy should envisage these excess liabilities of the employers and it should cover workers compensation, accident compensation etc.

Life Insurance: This is the most important type of insurance, the business should have. As there are many employees working in the organization, the life of all the employees should be comprehensively covered under the various insurance policies for the employees. In case of any untoward incident, the insurance company shall take care of all the needs of the employee by passing right amount of compensation in his favor so that the interests of the business is not affected by such an incident.