BUSINESS INSURANCE
Business Insurance
Being a businessman is a thrill and a headache at the same time. It is thrilling because it gives you the freedom to be your own boss and take decisions and work as you like. It is a headache because oftentimes you are on the edge yourself to decide upon the next move and make things happen quickly.
Coupled with that, you have to play different roles at the same time and make every role you play a success. The end result is rather than the freedom you cherish enjoying doing business, the business risks you shoulder will weigh you down and drain your physical, mental, emotional, financial, and legal stamina.
The first three energy planes are an absolute must for you as an ‘individual’ while the other two - that is the financial crisis and legal complications - have the potential to shatter the very existence of your business.
As a businessman, you may be a freelancer, an independent consultant, a startup, a small or medium business, or a large company, irrespective of the nature, industry, or size of your business, having the right insurance coverage helps you save sleepless nights, financial and reputation losses and legal costs.
A research study by the “Institute For Legal Reform”, the commercial tort liability of small and medium businesses (SMBs) increased from $300 billion to $343 billion from 2016 to 2018 (that is from Rs.22000 Cr to Rs.25,000Cr) an increase of 14% in two years time and the trend keeps moving up the ladder.
This proves that SMBs bore disproportionately higher liability costs than bigger corporations. They bore 39% business tort liability cost which is 10 times more than their earnings (revenue). Therefore the necessity of having suitable and appropriate business insurance becomes all the more important for SMBs.
The latest reported penalty paid by a single company (‘Amazon’) amounts to a whopping 746 Million Euros for exposing customer data (July 30, 2021.) i.e. around Rs.6600Cr. For Amazon, it may not be a big amount but for a SMB even Rs.1 Cr will lead to closure of the business.
The sad reality observed is that SMBs are yet to realize this critical facor. As a result, their digitala assets as well other crucial business components does not have any insurance coverage.
A Business Insurance is a contract between an insurer and policyholder that provides coverage for various business related risks that could damage or destroy a business enterprise.
No matter how solid your business structure is, varied claims can be made against your business, by anyone including your employee. Further, sudden and unexpected expenses in the form of natural disasters like fire, flood, pandemics, etc., as well as lawsuits, product liability, cyber hacking, burglary, theft and other liabilities, can pop up.
The financial crisis and the legal consequences that follow these incidents is huge. Unless you are prepared for it by availing suitable insurance policies with appropriate coverages, the survival of your business becomes impossible.
Biz Legal Guard helps you identify the risks your business is exposed to now and tomorrow and suggest suitable insurance policies at the best coverage price.
Business insurance available in the market are many. Each Insurance Policy protects particular business risks or a bunch of risks clubbed together. The important business insurance policies that can protect your business from claims and shall be in place include:
General Liability Insurance
Protection from claims causing bodily injury or property damage to someone else. For example, if a customer slips and fall in your store, this coverage can help pay for their medical expenses.
Product Liability Insurance
Protection against claims of bodily injury or property damage caused using your products.
Professional Liability Insurance
If you are a professional, this policy helps cover claims related to mistakes in the professional services that your business provides. Example: As a tax consultant due to your mistake, your customer had to pay a penalty. Having this Policy in place will save money in claims costs including legal costs. This Policy is also known as E&O Insurance or “Errors And Omissions Insurance”.
Business Interruption Insurance
This coverage helps you in case your business operation is interrupted for any reason, the lost income can be replaced for the covered property damage sucha as damage from theft, fire, flood etc.
Data Breach Insurance or Cyber Liability Insurance
This coverage helps your business respond to a data breach/theft/hacking etc., in case of loss of personally identifiable information your business holds. It can help cover your costs to Notify impacted customers or clients, Run a public relations campaign to improve your business’ reputation, Offer credit monitoring services, payment of compensation, legal costs in fighting court cases etc.
Today whether you are into the business of farming or into oil exploration, there are insurance coverages to safeguard your business intersts and assets. you name it, the Policy is there.
Insurance providers compete each other offering a basket of business risk coverages for each industry segment. They do offer attractive and innovative schemes and benefits as well customized policies that suits your varied risk exposures. They even club the benefits of different policies and offer as a single package.
The problem is the difficulty to find on your own, the right policy that suits the business risks your business is vulnerable to, then arriving at the accurate coverage that is needed, the different riders to be included, etc., is challenging and time consuming. Add to fire, understanding the insurance terminology to arrive at the right choice is not an easy task.
No need to worry. Biz Legal Guard can help you have the right business insurance coverage at the best market rates and provide risk management strategies to maintain revenue, avoid disasters, and prevent the winding up of your business due to hidden business risks.