What is an Insurance for Businesses?

Why is an Insurance for your Business important?

1
Businesses affected by building fires face 25-30% dip in footfall and business. (1)
2
Between 2014 to 2017, there were over 8,000 accidents in Indian workplaces! (2)
3
Almost 68% of Indian businesses face some kind of incident of theft or fraud in India (3)

What Insurance plans does Digit offer for Businesses?

General Liability Insurance

A General Liability insurance is there to protect you against any claims by third parties for any kind of damage or injury that was caused by your business’s operations, its products, or on its premises. 

For example, if a client or a delivery person comes in to your office, but they don’t see the "caution wet floor sign", and ended up slipping, falling and breaking their arm, this type of business insurance can help pay for their medical bills. Without this coverage, such accidents involving third-parties can lead to huge legal bills. 

It will also help to cover your business against any claims of copyright issues, libel and slander.

Management Liability

This kind of insurance is there to protect your company’s directors and officers against circumstances that aren’t usually covered under a general liability policy like allegations of wrongdoing, directed at the company’s managers, directors and officers. 

For example, it protects your business from financial losses that might arise out of any claims of things like discrimination, harassment, or wrongful termination brought against them in their capacity as directors and officers while managing or running business operations. 

While it is often overlooked by business owners, it is actually one of the MOST important insurance covers to protect not just your business, but the directors and managers as well. It will protect you against all kinds of unpredictable and potentially large liability claims, as it can cover costs or damages lost as a result of a lawsuit.

Professional Liability Insurance

This kind of business insurance is essential for your business if your provide services or advice (such as consultants, contractors, accountants, developers, architects, designers, event planners, or even lawyers, or doctors). It will protect you against any claims of negligence, inadequate work, errors, or malpractice from your clients or customers. 

For example, if you have an architectural firm, but you end up going over budget or missing a deadline which causes the client financial damage, this insurance will be there to cover you against financial losses and help you out with things like legal expenses. 

It will help your business run more smoothly, as you won’t need to worry about expensive lawsuits, and as an added bonus, your customers and clients will appreciate the guarantee of being compensated in case something goes wrong!

Contractual Liability

Contractual liabilities are those liabilities that you and your business would assume from entering into a contract of any nature, like a lease, rental agreement, or other common business contract.

Even if you’re covered by a general liability insurance, which will protect you from many day-to-day operational risks, it may not provide coverage in these instances.

But with a contractual liability insurance, you will be protected you even when your business has entered a contract with an indemnity agreement (also called a hold harmless agreement), or where you have assumed any liability on behalf of someone else for third-party bodily injury or property damage claims. It will cover you for things like financial losses and legal expenses.

Worker’s Compensation Insurance

Also known as Employees Compensation Insurance, this type of insurance policy will provide coverage for your business’s employees in case they get injured or become disabled as a result of their jobs.

Say you own a restaurant and one of your chef’s accidentally cuts their finger while cooking, with this insurance, they will be get compensation for their medical expenses, and even lost wages, without leaving your business at a financial loss!

This is very important for you to have as a business owner not just to protect your employees and workers, but also to protects yourself and your company from legal complications while keeping it in line with The Workmen's Compensation Act, 1923.

Employee Health Insurance

An Employee Health Insurance (also called Group Health Insurance) is a type of health insurance plan that covers a group of people who work under the same organization, such as its employees, under one policy. It is usually offered to employees as a healthcare benefit, and since the risk is spread across a pool of insured individuals, your business is able to keep premiums low. 

And in turn, whether your business is small or large, this type of insurance helps to ensure that your employees are and less likely to be burdened by financial stress is likely to boost attendance, productivity, and even your profits! 

In India, the Ministry of Home Affairs has recently made it mandatory for all employers to offer group health insurance coverage to their employees (even after the COVID-19 pandemic is over).

Property Insurance

property insurance is an insurance policy to protect your business’s shop or office premises from any risks such as fires, burglaries, natural disasters, and other unfortunate incidents. 

After all, you probably want to do everything in your capacity to ensure that your business no great losses. In case say, a fire damages your office building, with this insurance coverage, the building, as well as the contents of your business and, valuables such as cash in safe or shop counter will all be covered and you will be able replace your equipment inside.

Basically, a property insurance is vital to protect your business, whether it’s a restaurant or a clothing boutique or an accountancy office, from any potential losses and risks that could arise out of circumstances out of your control, including natural calamities and burglary.

Consequential Loss Insurance

Consequential Loss policy will be there to compensate you for consequential damages and business interruption costs in case of a fire. 

For example, if your shop is damaged by a fire (which we hope never happens!), while regular property insurance will cover your shop and the contents, a Consequential Loss policy you will also be protected for any loss to your business and revenue that you might face because of the damage to your shop. It will even cover operating expenses like electricity, which will continue even though your business activities have come to a temporary halt.

So, basically, with this policy it will make it all the more easier for you to minimize your losses and get right back into running your business, even after you have gone through a terrible ordeal!

Commercial Vehicle Insurance

If your business owns any vehicles, or even just one vehicle, it’s essential to get a commercial vehicle insurance. It will help to financially protect and cover you from any losses and damages caused to your vehicle, and the people driving it, as well as any third-party accidents. 

For example, if your worker is using your company’s van for a delivery and accidently hits a someone’s car while leaving your business, this coverage can help pay for this third-party's damages.

So, basically, if your business owns, leases or rents vehicles and has employees who drive for work-related purposes, like cab services or commercial buses, commercial vehicle insurance is essential. It will help to reassure your stakeholders and passengers that they will always be protected.

Also remember, that it is mandatory to at least have a Liability Only policy in place (to protect any third parties) according to the Motor Vehicles Act in India. 

Group Illness Insurance (COVID Cover)

And, speaking of COVID-19, another kind of business insurance is essential these days is a COVID-19 Group Protection. This is a health insurance policy for groups that is designed to cover employees during the coronavirus pandemic.

It provides coverage for any medical expenses that they may have during treatment for COVID-19 and will also help ease your financial burdens at such a point.   

Electronic Equipment Insurance (EEI)

An Electronic Equipment Insurance covers you and your business against many kinds of damage to your electronic equipment (like computers, medical equipment and even systems software) due to sudden and unforeseen events. 

Every business today needs some electronic equipment to function, even if it’s just a few computers. And when anything happens to this equipment, it can affect your business. Even fixing any damaged equipment can lead to lots of additional costs. 

So, with an electronic equipment insurance (or EEI), your business will be protected against such losses. 

Fidelity Insurance

A Fidelity Insurance protects you and your business in case your employees end up causing any losses due to things like dishonesty, theft or fraud, since these acts can lead to a huge loss for your business.  

For example, if you have a plumbing business, and someone was sent to a customer’s home but ends up stealing some of their jewelry, your company might be liable for this employee’s actions. 

With a fidelity insurance, you can cover yourself and your business in any such circumstances, however rare they may be.  

Plate Glass Insurance

Plate Glass Insurance is a type of insurance that is there to cover you against any damage or breakage of plate glass on your commercial buildings, like shop windows. Plate glass is a type of glass that is used to make window panes, glass doors, screens, and transparent walls.  

Many businesses use lots of glass, such as shops, offices, showrooms, restaurants, hotels, theatres, and more. Glass is also very fragile and can accidentally get damaged or break suddenly and, getting it repaired can turn out to be a costly affair.   

But if your business is covered by a plate glass insurance, you will be protected against such financial losses, and get help replacing your glass, as well as any alarms that were attached to the glass.

Sign Board Insurance

A Sign Board Insurance covers your business against any accidental loss or damage to the signboards. Since signboards and hoardings are placed outside and in public, they are exposed to many dangers, including natural perils, fire, and even theft.  

This insurance also covers against legal liability in case the damage to the sign board is the cause of any third-party damages, including bodily injury or death to a person, or property damage.  

Money Insurance

A Money Insurance Policy is there to help you protect your business's money and monetary transactions. There is always a little bit of risk involved when dealing with things like cash, cheques, drafts, postal orders.

For example, if you’re carrying cash from the bank to your factory to pay vendors or distribute wages, and it gets stolen, or there is a burglary and the money from a locked safe or cash counter is taken, this insurance policy will be there to help you out. 

You and your business will be protected in case of theft, loss, or accidental damage of your money, and you will have help in getting back that amount.

What are the benefits of having these Business Insurance policies?

Who should purchase a Business Insurance?

Digit’s business insurance offers coverage to many types of businesses including start-ups. Some common buyers of business insurance are:

Start-ups

All kind of start-ups from IT companies to consulting firms.

Wholesalers

Like provisions, furniture or auto parts wholesalers.

Retail stores

Like a grocery shop, bookstores, a boutique, or even a salon.

Businesses that provide professional services

For example, consultants, medical professionals, graphic designers, financial advisers, or marketing firms.

Businesses that cater to customers

Such as a hotel, club or restaurant, or even a professional photography business, or a catering business.

Businesses that represent a client

Such as lawyers, advertising and PR agencies.

Contractors

If your business deals with construction, transportation or logistics.

Production units

Any companies that make things like toys, food (like cakes or snacks), or medical products.

FAQs about Business Insurance Policies