INSURANCE PERSPECTIVE TO BUSINESS ENTITIES
For every business, there are several important insurance policies that protect against various business risks — from damage to goods and premises to legal liabilities and employee risks. Here’s a clear list depending on the type of business i.e. Manufacturing/Trading/ Services etc
Essential Insurance Policies are: –
Fire and Burglary Insurance
• Covers: Damage or loss to stock, furniture, fixtures, and premises due to fire, burglary, theft, lightning, explosion, etc.
• Recommended for: All shop owners, godowns, and trading establishments.
Marine Cargo Insurance
• Covers: Loss or damage to goods in transit — by road, rail, air, or sea.
• Types:
o Inland Transit Policy – for domestic trade.
o Marine Export/Import Policy – for international shipments.
Stock Insurance / Goods-in-Trade Insurance
• Covers: Stock kept in shop, warehouse, or godown against fire, theft, flood, etc.
• Often included under a Standard Fire and Special Perils Policy (SFSP).
Public Liability Insurance
• Covers: Legal liability to third parties (customers, visitors) for injury or property damage caused at your premises or due to your business operations.
• Example: A customer slips and gets injured inside your shop.
Product Liability Insurance
• Covers: Legal liability arising if your sold goods cause injury or damage to a third party.
• Recommended for: Traders selling electrical, food, or chemical products.
Money Insurance
• Covers: Loss of money (cash, cheques) during transit or from the premises due to robbery, theft, or hold-up.
Fidelity Guarantee Insurance
• Covers: Financial loss due to employee dishonesty or fraud.
Example: An employee misappropriates sales cash.
Professional Indemnity (if applicable)
• For traders giving advice or consultancy (e.g., commodity brokers, agents).
• Covers errors, negligence, or omissions in service.
Group Health / Employee Insurance
• Covers hospitalization or accident expenses of employees, fulfilling statutory or goodwill requirements.
Credit Insurance — also known as Trade Credit Insurance
• Protects a trader, exporter, or business from the risk of non-payment by buyers (domestic or international).