Business is all about taking a risk; when risks are not taken, there is less prospect for productivity, expansion, and gain. So it can be said that taking a risk is part and parcel of any business. But that risk should not prove detrimental for the business, so precautionary measures should be taken properly. It would be foolhardy when you are not taking precautionary measures where you should be. It would be best if you concentrated on purchasing sufficient insurance even when you are into running SME.
Now needs are not identical everywhere, and the scale of operation also differs, so knowing about the cover and essential relevant details is prudent right before finalizing anything. There are several packages and policies, for example, Tata AIG’s Small Business Package Policy, HDFC ERGO’s Business Suraksha, AXIS bank Insurance for SMEs, and many more are bent on offering comprehensive protection covers on varying occasions, for example, personal accident, burglary, fire and third-party liability and so on. The best thing about these policies is that they are convenient and can be accessed easily, and through a single plan number of covers can be accessed easily.
- There are a few stand-alone policies that can be customized. General insurers sell these. When you have more than one set up in different locations, some policies can be accessed for fire and burglary; these policies offer a floater option.
- So there are policies which would be working for different and all locations. There are annual plans which are likely to be renewed every year.
- The moment one of these options is chosen, right before purchasing, it needs to be made sure whether the basic policy protects the source of revenue internally and externally.
Ensuring the Assets Covering from fire and different other dangers
- When there is a fire accident or loss of an asset, or any evil damage, such policies can be accessed.
- These policies are also outfitted with ingrained cover for damage because of calamities and earthquakes, storms, and floods.
- There are some stand-alone policies which offer support when there are strikes, acts of terrorism, and riot together with any other form of negligence.
- Protection policies should also be covering office premises, which involve the office furniture, fences, elevator, and different office types of equipment and electrical gadgets. Before buying a policy, it should be ensured to declare all pricey items together with important official documents as the insurer would be obliged to cover these.
Business interruption and consequential losses
- Fire is known to disrupt abruptly and inevitably affect profits.
- Hence, general insurers have a specific plan to shield the business from losing the profit performing as an extension of the fire insurance.
- It is seen that such health insurance policies usually cover the losses to save a decrease in turnover, the extra cost to circumvent reduction in turnover, and the auditor’s fee.
- A cover should be having against burglary and stealing. Aside from property loss, it also covers a comprehensive range of damage because of attempted burglary.
- There is the loss of title deeds, loss of jewelry, business books, plate glass, and varying items covered under the corresponding policy.
- Policies are known to cover fire insurance and theft and varying other forms of burglaries where employees and dealers are victimized.
- The policy easily covers the loss based on the sum insured. Hence it is significant that the sum insured should be equal to the market value of all other items to have the replacement cost.
- Burglary and fire cover is known not to protect the hard cash. So for that, there is exclusive money insurance.
- Such policy is known to protect the cheques, postal, and pay orders and drafts. When there is burglary, accident the policy would be covering, and it would be reimbursed.