Business insurance, at its most basic level, protects firms from potential losses caused by hazards encountered in the normal course of business. This sort of insurance safeguards a company’s financial assets, intellectual property, and physical property against threats such as:
- Damage to property
- Loss of earnings
- Injuries and diseases among employees
In the event of natural catastrophes, data security breaches, client harm, and other similar business emergencies, having business insurance can help your company survive.
There are various types of business insurance.
Because potential hazards vary in nature and magnitude, different types of business insurance should be considered depending on your company. Some of the more common ones are listed below.
The policy of the Business Owner (BOP)
Damage to property (caused by things like theft, fire, and fortuitous accidents) and, in some situations, business disruption are covered by the standard BOP.
Smaller businesses (those with fewer than 50 employees) are more likely to purchase this form of insurance. It is intended to provide enough protection in the event that operations must be shut down or scaled back due to damage.
Property Insurance is another name for this type of coverage.
Insurance for Workers’ Compensation
This primarily concerns workplace injuries, with the goal of safeguarding both your company and your employees by guaranteeing that they obtain medical treatment in the event of a work-related accident.
Workers’ Compensation Insurance pays for employees’ medical and health expenses in the case of a workplace accident, and it also helps to raise employee morale and performance by demonstrating that you care about them.
Employees’ Group Personal Accident Insurance
This is a Personal Accident insurance offered by a company to its employees or members, as the name implies. Because the coverage is essentially obtained on a wholesale basis, group Personal Accident Insurance premiums are typically lower than individual insurance policies.
This is frequently included in an employee’s benefits package. The policy is often owned by the employer, and coverage is discontinued when an employee quits the company.
Cyber Liability / Data Breach Insurance
A cyberattack in today’s digital age could have very severe financial ramifications. A data breach could trigger a cascade of business issues that could not only harm a company’s brand, but also end in a lengthy and costly lawsuit.
As a result, a rising number of firms are purchasing Data Breach or Cyber Liability Insurance to protect themselves from the financial consequences of such cyber assaults. These could include things like identity theft protection, public relations damage control, legal fees, and other risks.
While these are the most common types of company insurance plans, SMEs can also purchase lesser coverage. Vehicle insurance, equipment insurance, and general liability insurance are examples of these types of policies.
There’s also a plan called Key Man Insurance for larger companies. This shields a firm from the financial consequences of the death of someone deemed irreplaceable by the company.
The company is both the policyholder and the beneficiary in this plan. This also includes expenses such as lost wages until a replacement is found, as well as debts directly related to the loss of the important individual.
Why Do Companies Require Insurance?
The short explanation is similar to why you would need any type of insurance in the first place: unanticipated events can occur at any time. And when these things happen, you’ll want to have a reserve to cover any damages that you may otherwise have to pay for out of pocket.
Here are a few more reasons why you should get commercial insurance.
It safeguards your staff.
As you can see from the preceding section, there is a sort of insurance that covers things like medical care, lost earnings, and burial benefits if your employees are injured or sick at work.
It safeguards your clients.
Property damage, personal and advertising injury, bodily injury, and product liability are all covered by a Commercial Owner’s Policy, which combines business property and liability coverage.
As a result, if a customer has an accident at your place of business, your insurance may be able to assist in covering their medical expenses.
It enhances trustworthiness.
It shows your customers, suppliers, and contractors that you’re serious about risk management when you have the right insurance plans in place. As a result, your credibility will improve.
Insurance is required in several contracts.
Various sorts of contracts will be required in the normal course of business. Some of these agreements demand insurance coverage. Examples include the following:
- Getting a building to rent
- Borrowing money to buy things
- Agreements on loans
- Agreements with clients
It can aid in the recruitment of staff.
If you offer life insurance as part of your employee benefits package, it will undoubtedly be a plus for your company when potential employees check through your benefits package.
These are just a few of the reasons why you should protect yourself from the unexpected whenever possible.
Top Business Insurance Providers in the Philippines
- Malayan Insurance
- MAPFRE Insurance
- Standard Insurance
Tips Before Getting Business Insurance
Examine your assets.
When looking for insurance cover, this is a simple but crucial first step. Some experts advise starting with your human capital and enrolling your company in a basic health plan. Being a PhilHealth member is needed in some situations.
Of course, you must consider all of your physical assets, including your premises, equipment, and vehicles used in the ordinary course of business.
Check to see whether you’re covered by any industry-specific insurance.
Providing specialty solutions for popular high-risk industries including marine, energy, construction, and manufacturing has become normal practice. If you work in a field where specialist insurance products are available, you should look into how they compare to ordinary coverage.
If none of the unique products are appropriate for you, base your conventional insurance plan on your personnel, physical assets, and target clients.
Examine all of the providers’ offers.
If you’re a small business with a few employees, the government organizations SSS and PhilHealth will usually suffice. For people seeking to ask, the websites of various suppliers usually have a quote option easily available.
However, if you want to delve deeper into the details of the policies, you should contact the providers’ agents, who will be pleased to discuss matters with you. You can also hire an insurance broker for a charge if you want professional advice.
You’ll want to make sure you understand the scope of the protection you’ll be obtaining so you can rest easy knowing that if something goes wrong, you’ll be covered.
A potential mishap’s financial ramifications might rapidly wipe away a tiny business’s assets. Insurance provides protection in the event that your firm causes injury to clients or passers-by, or if your organization is harmed by an incident such as a fire.
It’s crucial to get company insurance not only to protect yourself but also to safeguard others. If you own a restaurant and a customer becomes ill after eating one of your products, or if you own a delivery company and one of your trucks hits a pedestrian, you must be able to compensate the victim.
It’s also crucial to get business insurance because it may be required for certain sorts of business operations. Some contracts stipulate that you must be covered, and in most jurisdictions, some forms of insurance, such as workman’s compensation, are needed for all firms.
Read more: How can you ensure that your workers return to work safely and smoothly?