Are you a business owner?
If yes, then you need to mitigate risks related to employee-related issues, legal liabilities and more. Considering this, a comprehensive business insurance plan, including a workmen compensation policy and commercial vehicle insurance, is a saviour for big or small businesses. Read on to learn how these policies can benefit businesses.
What Is Business Insurance and Why Is It Important?
Business insurance, a way to manage risk, protects employers and their employees against losses caused by events that may happen during the regular course of operations and can set a company back. These insurance plans shield not only one from losing his/her business but also the main source of income.
It is to be noted that companies assess their insurance needs based on possible risks, which vary depending on the environment in which the business operates.
Further, business insurance policies are of different types, including:
- Liability insurance (professional and product)
- Property insurance
- Workers compensation insurance
- Commercial vehicle insurance
What is Workmen Compensation Insurance?
Controlled by the Workmen’s Compensation Insurance Tariff in India, workmen compensation insurance not only offers compensation to employees for lost wages but also provides medical care for those who are hurt due to their jobs. Notably, employers pay for workers’ compensation coverage.
Besides paying for injuries and rehabilitation, a workmen compensation policy may also compensate a family after a work-related death.
How Does Workmen Compensation Insurance Benefit Businesses?
Here are the benefits businesses can reap upon buying workers compensation coverage.
- In case an employee gets sick or ill while on the job, this insurance pays for his/her lost wages, medical care, and other expenses. In the absence of a workers’ compensation policy, a company might have to pay out of pocket for these expenses, which can impact a business’s growth.
- Offering peace of mind to business owners, these policies cover employees even if they are responsible for workplace accidents.
What is Commercial Vehicle Insurance?
Commercial vehicle insurance covers the damages caused to or by a commercial vehicle during accidents, theft, fire, man-made disasters and natural calamities. Also, these policies cover the losses caused to the owner or driver of that particular commercial vehicle.
Notably, in India, it is compulsory for all businesses to cover their commercial vehicles, such as trucks, buses, tractors, and commercial vans, at least with third-party insurance policies. This protects third parties against any damage that could be caused by their commercial vehicles.
How Does Commercial Vehicle Insurance Benefit Businesses?
Let’s dive deep to learn how commercial car insurance benefits businesses.
- It protects against any financial burden arising from accidental damages. These policies also cover lawsuits and legal fees in case of damage to a third person or property caused by a commercial vehicle owned by a business.
- These policies also award a no-claim bonus at renewal if no claim is made during the annual policy period.
- A commercial vehicle insurance policy can be written off in books as a business expense that is tax deductible.
- Businesses can avail of cashless repair at any network garage due to damage in case of an accident.
Business insurance is a must-have for both small and big companies, helping them manage risks that can lead to huge financial losses. Featuring commercial vehicle insurance, property insurance, and a workers’ compensation policy, business insurance also helps companies protect their financial assets, physical location, and intellectual property against unforeseen events like accidents or crises.
