Types of Corporate Insurance
Corporate insurance is a provision through which organizations can cover their losses. One should definitely have at least one of these in order to financially protect an organization and for keeping the business running swiftly.
- Property Insurance: In case the property of an organization gets damaged by incidents such as natural calamity, fire, worker’s unrest, vandalism etc., property insurance can help cover the losses. Some insurance plans cover all types of incidents with an exception of very few ones under their All-Risk policies. On the other hand, there is another type of property insurance that is known as peril-specific policies which provide financial cover only for those losses that are listed in the policy.
- Professional Liability Insurance: This type of insurance is also called Errors and Omission Insurance (E&O) insurance and protects the business from all types of negligence claims and certain mistakes. It differs from one industry to another and is addressed through an industry-specific customized policy. This type of corporate insurance is mandatory for any organization that deals with accounting, finance, consulting, healthcare, law and insurance.
- Workers’ Compensation Insurance: A company should add Workers’ Compensation Insurance in its insurance list the moment its first employee is hired. It covers the medical treatment expenses of the employee and provides compensation in case of death or disability of the employee while he/she is working for the company.
- Group Health Insurance: One of the most important corporate insurance, Group Health Insurance offers healthcare benefits to a group of people, i.e. the employees of an organization. Generally, this insurance plan is uniform in nature and offers the same benefits to all the members of the group. What’s more, Group Health Insurance helps in availing substantial tax benefits.
- Product Liability Insurance: If you have a business which manufactures products for mass consumption in the general market, then you should definitely have Product Liability Insurance. Even if the manufacturer is sure that the products are flawless and safe, you ever know if the product will end up causing damage to someone. Thus, the best option to protect a manufacturing business is with the help of this specific type of corporate insurance.
- Business Interruption Insurance: There are likely to be incidents when certain events and occurrences can interrupt the normal course of your business. This insurance will help cover up the losses one faces in this interruption period. Business Interruption Insurance is the best for a retail store or for the type of business in which one needs a physical endpoint to get in touch with the customers.
Thus, there are many types of corporate insurance that can assist you during the course of your business and can assure full financial protection of the same.