Types Of Commercial Insurance Plans in India


There are various risks that a business faces. It can be perils of nature, claims of employees and competitors and anything in between. Some of these risks may be managed while some others not, but there is a way to mitigate them – using a commercial insurance policy.

What is a commercial insurance policy?

Just like you would secure your health and life, a commercial policy extends the scope of insurance towards the business risks. Any losses that your business is expected to face is covered using a commercial insurance policy. Its scope includes property damages, injuries to employees or even public liability for that matter.

Let us look at the various types of commercial plans that can be purchased in India.

Liability insurance

Liability insurance is the one that protects your business from any lawsuits that may be filed. These claims can be made by third parties against your organisation and can lead to a hefty financial loss. It further is specific to your needs and is divided into product liability insurance, public liability insurance, product recall insurance, clinical trials insurance, and professional liability insurance.

Directors and Officers liability insurance

Any professional misconduct, misstatement, negligence or error can result in personal liability for the directors and officers of a company. Since these individuals represent the company, it is necessary to insure against liabilities that can arise due to their actions using directors and officers liability insurance.

Fire insurance

Perils of fire can happen at most inopportune times. Either a short circuit in the electrical system or any outbreak of fire can damage your entire premise and its contents. Using a fire insurance plan, the cost of repairs or reconstruction can be insured.

Marine insurance

Maritime perils like pirate attacks, war, casualties in the sea are often observed that can lead to hefty losses. Purchasing a marine insurance policy, you can ensure protection against these unexpected perils.

Erection All Risk Insurance

This policy covers the losses or damages while the installation of machinery or equipment. It protects the contractor or employer against physical loss or damage in the erection process and ensures third party coverage too.

Workmen’s compensation insurance

Workmen’s compensation insurance covers any liabilities arising due to death or injury caused to the employees during employment. It provides coverage for bodily injuries, death, disability of all forms and the legal costs associated with them.

Property insurance

Unexpected events like fires that damage your property can have a huge financial impact on your business. A property insurance policy helps prevent these financial setbacks hampering the sustainability of your organisation.

Financial lines insurance 

Financial insurance cover offers protection to the business owners against the suits filed by the employees against the employers. This policy is customisable according to the nuances of industry and nature of business.

Cargo Insurance

Organisations that deal in cargo business should prefer buying cargo insurance. Any damage to the shipment between any two points can be insured using a cargo insurance cover. This insurance policy can be opted for transport using air, road, rain, or courier.

The above-mentioned are some of the popular types of commercial insurance plans that can help you mitigate the risk. Instead of bearing the financial impact due to these risks, it is advisable to purchase a suitable insurance policy. Thus, make sure you avail the necessary insurance plans to avoid any financial setbacks and disruption in your operations.