5 Things To Know Before Buying Commercial Insurance
If you own a business, whether big or small, it is a must that you protect your personal and business interests with the right amount of commercial insurance.
In many cases, it has been observed that small or medium enterprise owners, in an attempt to save costs, will opt for minimal cover. This is a grave mistake and can lead to trouble.
Various types of commercial insurance policies are available to limit your potential liability. The most common types of commercial insurance include Commercial Vehicle Insurance, Commercial Property Insurance, General Liability Insurance and Worker’s Compensation Insurance.
Commercial insurance is a very crucial expense for a business. With so many commercial insurance providers available in the market, you must do a thorough research and not purchase a policy on impulse.
Whether you are a new entrepreneur or an established business-owner, there are few important points that you must consider before purchasing the commercial insurance.
- Seek Optimal Amount of Coverage
Initially start with an insurance, which provides basic coverage for all the important needs of the business. The policy must include protection against all the liabilities, which would otherwise have a serious financial strain on the business. However, be careful not to go overboard.
The insurance must suit your needs and budget so that you can minimise your risks. If you need extra coverage, you can always use add-ons later.
- Enquire about the Exclusions
In any insurance policy, there are certain elements or hazards that an insurer does not cover. These are known as exclusions.
You must enquire about the exclusions in the very beginning itself. It brings about transparency and saves a lot of anger and frustration that you may experience if you find out about things after you have suffered a loss.
- Know About Your Insurer
You must do your homework before selecting the insurance provider. Their claim settlement ratio, services provided, risk identification, submission process for claims and time period for claim settlement, among others factors must also be checked.
The provider must specialise in the type of insurance cover you are seeking. For example, an insurance provider, which has health insurance as a flagship product, may not be the best choice for commercial insurance.
- Get Information on Deductibles
Deductible is something that you need to understand at the very outset of your insurance policy. It is the portion of loss amount, which you are supposed to pay out of your own pocket.
When the deductible is high, the premium is low and the coverage is lesser. However, if the deductible is low, the premium amount is higher and the coverage provided is also more. So it is best to understand the clause of deductible very clearly.
- Find Out about Workmen Insurance
Workmen insurance is a very crucial part of a commercial insurance policy. This insurance is supervised by the Ministry of Labour and denotes the liability of a business owner for death or physical injuries faced by the employees during the course of an employment or arising out of any accident while at work.
Once you have taken the insurance policy, it is your utmost duty to pay the premium timely and not defer the payments. The insurance policy will be renewed every year and in case you do not wish to renew it, you must inform the insurer in writing.
Even as you opt for the best commercial insurance policy, you must ensure that you follow adequate safety measures and risk management policies in your business.
At Bajaj Allianz, you can also opt for financial lines insurance, employee benefits insurance, engineering insurance, energy insurance as well as international insurance.