Businesses are exposed to different kinds of financial risks which might hamper their productivity, profitability and growth. These risks can arise from customers, stakeholders, employees, vendors and even the Government. To cover these risks corporate insurance plans are available.
Corporate insurance plans are those insurance plans which cover the myriad risks faced by businesses in their day-to-day operations. Since there are different types of business risks, there are different types of corporate insurance plans to cover these different risks. Let’s, therefore, have a look at some of the most important and popular corporate insurance plans –
1. Factory insurance
A factory insurance policy covers your factory against natural and man-made disasters. If the factory is damaged due to fire, flood, storm, earthquake, etc., the financial loss suffered due to such damages would be covered by the policy.
2. Contractor’s All Risk Insurance
This policy covers the risks which contractors face when they are engaged in the construction of a civil project. These risks include fire, explosion, collapse of the structure, impact damage, storm, landslide, flood, electrical or mechanical breakdowns, burglary, theft, riots, etc. Moreover, the policy has a range of additional coverage benefits which can be taken by contractors depending on the different types of risks that they face in the construction phase.
3. Plant and machinery insurance
Plant and machinery insurance plans are suitable for contractors who use plant and machinery for construction and other purposes. If the plant and machinery are damaged due to unforeseen events, contractors can suffer considerable loss in repairs or replacement of the damaged components since plant and machinery are expensive. Thus, plant and machinery insurance plans ensure coverage against unexpected physical damages suffered by plant and machinery. The policy compensates the policyholder for the cost of repairs or replacement of the insured equipment.
4. Product liability insurance
Manufacturing businesses depend on the sale of their products to generate revenue. However, if the product turns out to be faulty which causes bodily injury or property damage to any third party using the product, the business can suffer from a third party liability. This third party liability incurred due to the product of the business is covered under product liability insurance policy.
5. Professional indemnity policy
This policy is extremely relevant for professionals who render their services to individuals like doctors, lawyers, architects, etc. If, during the course of their work, professionals make mistakes due to which their clients suffer, the clients can file a lawsuit for wrongful action against professionals. A professional indemnity policy protects professionals against such lawsuits which are a result of errors or negligence when discharging their duties.
6. Public liability insurance
This is a comprehensive policy which protects the business against any type of public liability which might arise if the operations of the business cause physical harm or property damage to any third party. The policy covers the cost of damage suffered by third parties and compensates them thereby providing financial assistance to the business against possible lawsuits.
These corporate insurance plans help businesses to stay afloat even in times of emergencies which might cause a considerable financial loss. So, businesses should assess their coverage needs and then invest in relevant corporate insurance policies for financial security.