Today we will discuss on various type of insurance cover. In this blog we will discuss on the various type of risk in the business and how different insurance cover will help you to cover all the risk. every business shoul cover the risk as per their nature. To grow a business it is very necessary to mitigate the losses witrh adequte insurance.
Type of Insurance cover
1 Life insurance
Life insurance is for the cover of the life, every individual person should take the life insurance.
2 Medical insurance
Medical insurance is for the coverage of the health, this also has to be taken for the every individual person.
3 Trade credit
Trade credit is used for managing the cash flow for short term. trade credit meand “buy now and pay later”. In the export trade credit will be helpful as it will cover the payments for product or services sale to approved buyer on open conditions. vendor offer the credit period to the customer by getting trade credit insurance vendor can get the short term money. It is similar to buyers credit but easy to get and collateral free.
4 Director and officer
This policy is for the key employee of the company, this policy will cover the sharing of the of the key employee of the company in case of death.
5 Liability insurance –
Liability insurance needed to protect your company from the third party. Any claim or suit filed by third party for the negligence by you or your employee is covered under liability insurance. It is also named as error and omission and professional liability.
7 Travel insurance
In travel all type of risk in travel will be covered like credit card fraud while travelling. In travel insurance it will cover the delay in flights or cancellation of flight by the airline.
9 Fire insurance
It will cover the cost to make a building that has beed demaged by the fire. If you have taken commercial property policy it will not cover that policy.
10 Marine insurance
Marine insurance will cover the risk of the sea, when you import oe export any goods
11 Cyber risk
This will cover the risk from the heckers. If hacker have delete your data, It will cover the expense to recover the data like salary of person, fixed assets. In cyber risk will also cover if the hackers threat you to pay me specific amount for safety and recovery of data. Sometimes third party may also sue you for the loss of his data.
12 Weather Insurance
Weather insurance is a cover for the agriculture crop from the excess rainfall,short rain fall etc. It will provide stability to the farmer. Now a days modi goverment has also launched a scheme Pradhan Mantri Fasal Bima Yojana (PMFBY) to help the farmer.
Is Insurance cover necessary for the Business?
Yes, insurance is neccesary to run the business long run. It is very essential for a business man to read the insurance policy careful and take it as per the nature of business.
What is Endorsment in Insurance
Endosment is basically an extension of Main policy. If you have taken any insurance policy after that there is change in the policy like increse in number of employee, increse in Quntity of goods you can extend the main policy.