Business Insurance Explained in Detail

December 11th, 2019

Business insurance is a broad term that includes several aspects including the property, people, future loss, investment and more. Based on several factors insurance policies are designed to cover the amount of loss that may occur due to any accidents or unwelcome situation. It is always advisable to have a business insurance policy whether you are a corporate giant or a start-up or a work from home person.

What is the need of business insurance?

To sustain any kind of loss due to people, policy, accident, weather or circumstances. Yes, your business needs a protective cover to go through any kind of unexpected events and to come out of it without any major losses.

Business insurance covers the following aspects:

  • Business premises insurance which covers the building in which your company operates

  • Business assets insurance which covers the contents of the building and the premises

  • Public liability insurance which covers any kind of accidental damage that happens to people within the office

  • Employer’s liability insurance is a legal requirement for protecting employer and business in case someone gets injured while on the work premises

  • Professional indemnity insurance which is applicable if you offer professional advice to people or businesses

  • Other tailor made or specialist policies

You can select any or all of the policies depending on your type and requirements of the business. Check with your insurance provider about the details of all these aspects and which one is required to protect your business against any kind of unexpected circumstances that involves damage to property or people.

Do I need business insurance if I work from home?

If you use your home as an office then your home insurance may not be enough to guard your business against any kind of losses. So, it is advisable to inform your home insurer about the fact that you use your home as an office and so, if business cover is needed then thay may suggest an option to you.

How to calculate business insurance premiums?

Just like other kinds of insurances, the premiums for business insurance are also calculated based on risk-benefit analysis. Premiums are calculated based on the following factors:

  • Type of business

  • Size of turnover

  • Number of employees

  • Previous claims

  • Health and safety record

  • Level of interaction with customers or clients

By considering the above mentioned factors, the insurance provider will calculate the amount of risk involved in insuring you. Based on the risk, the premiums are calculated.

How to get a cheap business insurance policy?

Select the aspects that are relevant. Combining the aspects into one policy will help in getting cheaper premiums. For example, if you need employee liability insurance and public liability insurance then you can ask the insurer to combine both so that you get a single premium. This will be cheaper than paying for two separate premiums and much easy to remember as well.

A word of caution would be that the cheapest policy may not be the best insurance cover for your business, so choose wisely.

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