Save your business, get insurance! The ultimate funda for choosing the right business insurance
Friends, have you ever seen a shop locked? Where has the owner gone? Business is down? No sir! He is a smart man! He did not leave the fate of his business to God. He has taken business insurance!
Doing business in today's world is not a child's play. Dangers lurk everywhere. Sometimes there is a fire, sometimes there is a theft, sometimes a customer files a case. A mistake can lead to a loss of lakhs. In such a situation, business insurance becomes a shield for you. It protects you from huge financial losses.
But this business insurance is also not a magic lamp. There are various types of insurance policies available in the market. If you take a policy that is not useful for you, then understand that you are trapped! So the question is how to choose the right business insurance?
First step: Understand your business
This is like taking medicine without consulting a doctor. First of all, it is important to understand what kind of business you have. Do you run a shop? Do you provide any service? Or do you do an online business? Every business has its own risks.
For example, if you run a clothing store, then you are at a higher risk of fire or theft. In such a situation, you need insurance that covers those things.
If you do event management, then you may be at risk of an accident during an event. In such a situation, you will need Public Liability Insurance.
What if you do online business? There is a risk of cyber attacks. So Data Breach Insurance can be beneficial for you.
Identify the risks according to your business. This is the first step towards choosing the right insurance.
Second step: What is covered, what is not?
Now it is time to examine the insurance policy closely. Every policy has written what things it covers and what things it does not. This is called "Coverage" in technical language.
Read every policy carefully. Understand for which risks you are getting coverage and for which you are not.
Never blindly trust the words of an agent. Ask yourself questions. Is this policy right for my business? Does it cover my risks?
Remember, cheaper policies provide less coverage. It is not necessary that expensive policies are the best. Choose according to your needs.
Third step: Understand the deductible
Deductible is an amount that you have to pay yourself at the time of a claim. This is a kind of co-payment. If you keep the deductible high, the premium will be reduced. But you will have to pay more money at the time of claim.
Choose the deductible as per your budget and requirement.
Step four: Compare premiums
The premium is the amount you have to pay to the insurance company every year or every month. Different companies charge different premiums. So try to get quotations from multiple companies.
Apart from the premium, also keep in mind the coverage and deductible.
Step five: Check the reliability of the insurance company
Just by hearing the name of the insurance company, one can tell how reliable it is. But still pay attention to some things:
What is the record of the company? Does it pay claims easily?
What is the rating of the company? Does it have a good rating from a reliable rating agency?
How old is the company? An old and established company is more reliable.
Only after considering all these things will you be able to choose the right business insurance.
Remember, business insurance is an investment. It protects your business. So take it seriously and choose wisely.
Now you are ready to wrap your business in the protection of insurance!
How to claim? What things to keep in mind while making a claim?
Friends, in the previous chapter we saw how to choose the right business insurance. Now it is time to make a claim. Making a claim is not rocket science, but it is important to keep some things in mind.
First step: Inform immediately
If an incident occurs for which you want to claim, then immediately inform your insurance company. The sooner you inform, the sooner your claim process will start.
Second step: Give details of the incident
Give complete information about the incident to the insurance company. What happened? When did it happen? Where did it happen? Give a detailed description of all this. Also, collect evidence of the incident. Such as, police report, doctor's prescription, photographs etc.
Step 3: Submit documents
The insurance company may ask you for some documents. Such as, copy of insurance policy, claim form, medical bills etc. Submit all these documents on time.
Step 4: Cooperate
Cooperate with the insurance company. If they need any additional information, provide it immediately. The more you cooperate, the sooner your claim will be settled.
Step 5: Be patient
The claim process may take some time. So be patient. If your claim is getting delayed, contact the insurance company and ask what is happening.
Some additional tips:
Fill the claim form carefully. Do not make any mistakes.
Keep the evidence safe. This will strengthen your claim.
Contact your insurance agent. He can help you in the claim process.
Do not cancel your policy until the claim is settled.
If you keep these things in mind, your claim will be settled easily.
Remember, the real benefit of insurance is available when you need a claim.
Some Special Types of Business Insurance
Friends, till now we have seen how to choose the right business insurance and how to make a claim. Now we will talk about some special types of business insurance.
1. General Liability Insurance:
This is the most common type of business insurance. It covers you for damage caused to a third party. For example, if a customer gets injured on your business property, then this insurance will compensate you.
2. Property Insurance:
It covers your business property for damage caused by fire, theft, vandalism etc. This may include your building, machinery, stock etc.
3. Workers' Compensation Insurance:
If your employees get injured or fall ill during work, then this insurance will compensate them. This may include medical expenses, salary loss etc.
4. Product Liability Insurance:
If your product causes injury or damage to someone, this insurance will cover you. For example, if you sell any spoiled food and someone gets sick due to it, then this insurance will compensate you.
5. Business Interruption Insurance:
If your business closes down due to any accident or disaster, then this insurance will cover you for the loss incurred. This may include loss of profit, increased expenses, etc.
6. Data Breach Insurance:
If your computer system gets hacked and your customers' personal data gets leaked, then this insurance will cover you. This may include legal expenses, media relations expenses, etc.
These are some of the major types of business insurance. Many other types of insurance may be available according to the specific needs of your business.
How to claim for business insurance and what documents will be required?
Friends, in the last chapter we saw some major types of business insurance. Now we will talk about how to claim for these insurances and what documents will be required.
You have to keep the following documents ready to make a claim:
Copy of insurance policy: This is the most important document. It contains the terms and coverage details of your policy.
Claim form: The insurance company will give you a claim form. In this form, you have to fill in the details of the incident, the amount of loss, and other necessary information.
Police report: If there is a police report related to the incident, then submit it as well.
Medical bills and reports: If someone is injured or ill, then submit his medical bills and doctor's report.
Photographs: Take photos of the incident spot. This will be proof of the loss.
Invoices and bills: If any property has been damaged, submit its invoices and bills.
Statements of witnesses: If any witnesses have seen the incident, take their statements.
During the claim process, you need to keep the following things in mind:
File the claim on time: The sooner you file the claim, the sooner your claim will be settled.
Gather evidence: The more evidence you have, the stronger your claim will be.
Fill the claim form carefully: Do not make any mistakes.
Cooperate with the insurance company: If they need any additional information, provide it immediately.
Be patient: The claim process may take some time.
If you keep these things in mind, your claim will be settled easily.
Additional Benefits of Business Insurance
Friends, so far we have seen how to choose the right business insurance, how to make a claim, and what documents will be required. Now we will talk about some additional benefits of business insurance.
1. Financial security:
Business insurance provides you financial security. If any accident or disaster happens, the insurance will compensate you for the loss. This will not stop your business and you will be able to pay salaries to your employees.
2. Peace of mind:
When you know that your business is insured, you get peace of mind. You can focus on your business without any worry.
3. Bank loan is easily available:
If your business is insured, the bank will easily give you a loan. Because the bank knows that the future of your business is secure.
4. Increased customer trust:
When your customers know you have business insurance, they trust that you are honest with them and have their best interests in mind.
5. Legal protection:
Some types of business insurance also provide you with legal protection. For example, product liability insurance can protect you from a customer lawsuit.
6. Tax benefits:
In some cases, business insurance premiums can get tax benefits.
Apart from all these benefits, business insurance can also help you grow your business.
