What is Small Business Insurance in India? Why it is Important?

Even if you have a small business, it is very important to protect your business against potential damage. Be it property damage, fire outbreak, or any other kind of mishap that poses a risk to your business, small business insurance provides the necessary coverage. Scroll through the section below to learn all about small business insurance in India.

What is Small Business Insurance?

As the name suggests, Small Business Insurance is a type of insurance plan that provides coverage for the different kinds of risks related to your business. With small business insurance, you can get coverage not just for property damages but also for all employee-related risks. Owing to the importance of Small Business Insurance, several companies like ICICI Lombard, TATA AIG, and more now offer such plans. 

Why Should You Buy Business Insurance?

Some of the compelling reasons why you should buy Business Insurance are as follows:

• To keep your business protected from natural disasters, thefts, vandalism, or others. This means that if any property damage or loss is happening due to any of these mishaps, then small business insurance will provide the necessary coverage.
• Small business insurance provides credibility to your business.
• Be it a small or large-scale business, there is risk attached to all kinds of businesses. Small business insurance provides financial protection against such lawsuits as there is a hefty amount that is spent on case settlement costs, defense costs, and others.
• Small business insurance also provides employee protection. For instance, if an employee is injured while in the workplace, then small business insurance will protect your business from any lawsuits related to workplace injuries.
• Last but not least, small business insurance provides a much-needed peace of mind. Knowing that you have the necessary protection for your business, you need not worry about any mishap that can cause potential damage to your business.

Different Types of Business Insurance

Listed below are the different types of business insurance that you should know about:

• Liability Insurance: Any damage to a third party due to your business is covered under Liability Insurance.
• Professional Liability Insurance: There may be times when your business fails to provide the necessary services. In such a case, Professional Liability Insurance provides the necessary coverage.
• Employee Insurance: Any expenses related to the treatment of an employee’s injury or illness are covered under Employee Insurance.
• Loss of Income Cover: There are times when your business may not be profitable. To provide compensation against such loss, the loss of income cover becomes important.
• Vehicle Insurance: Vehicle Insurance provides coverage if any commercial vehicle is damaged due to an accident, natural disaster, or any other mishappening. 

Things to Consider While Buying Small Business Insurance

There are several things that you need to consider while buying Small Business Insurance such as those listed below:

• First and foremost, assess the total risks associated with your business. This will help you understand the kind of coverage you need to protect your small business against losses.
• Compare the different types of small business insurance plans available. Doing so will help you in buying the right insurance plan for your business.
• The type of coverage varies from insurer to insurer, so always check the coverage provided under the plan you are thinking to buy.

Take Away

So, if you have still been thinking of buying a small insurance plan, now is the right time. It is always a better idea to compare the different plans available and accordingly buy the right plan for your business.