The corporate insurance protects the insured business or company by providing cover for activities like liability claims, accident in industries and the damage due to the calamities etc.
In this article you will get the basic idea about the corporate insurance and its types, its benefits, what it covers and what not covers, needs of the policy etc.
What is corporate insurance?
It is the type of insurance which helps to protect your company or business in the case of property losses and income losses due to disasters or natural calamities and provide health protection and medical insurance to your employees etc. It also helps you to face the claims made by the customers for providing faulty services.
Without an insurance your organisation will not able to grow while the growth of fully insured business never gets interrupted due to such a situations.
The insurer provides the limitations for the different policies under this category hence the selection of the policy should be done properly by considering the needs of your business.
Why corporate insurance is essential ?
The following are the reasons which states why the corporate insurance is important for your company or business.
1) The physical assets of your company or business may face the calamities like explosion, tornado, cyclone, fire hazards etc. In such a condition the policy will help you to to recover in such conditions.
2) The damage to the property by theft may gets recovered in this policy.
3) After the disaster happened at your company location the company may face the income loss which may be recovered by the insurance policies. the policy also provides cover for your temporary relocation of your business from the place of disaster.
4) Even if you are perfect while providing the services, but the mistakes may be happened which cause the damage or difficulties to the customer. Hence the policy helps the insurance company by providing coverage for the product liability or professional liability.
5) The people involved in the sector of medical services also gets sue by the patients for the wrong treatment. Hence this insurance will provide cover to such professional liabilities.
6) Even after taking care of safety measures the employer of your company may be subject to the accidental injuries or death also. Hence the policy also covers medical expenses to your employees or death benefits to the family of the employee.
7) The policy under this category also includes health Insurance facility to the group of employees.
8) It also provides coverage’s if your company face the cyber attack.
Benefits of Corporate insurance :-
By getting the policies under this category you may avail following benefits.
1) Coverage for property damage
2) Coverage for product liability claims
3) Coverage for liability claims against the the directors or the officers.
4) health insurance for the employees group of an organisation
5) Coverage for accidental injuries to an employees while working in company premises.
6) Coverage for your income loss after disasters happened.
7) Coverage for the claims made by patient against physician for providing wrong treatment.
Types of the corporate insurance :-
The corporate insurance is divided into the different types according to the requirements of the customers. Some of the the types of Corporate insurance are listed below.
1) Corporate property insurance :
The property insurance covers the damage to the company assets by the natural calamities like storm, tornado and accidents like explosion, busting of equipments, vanadism etc.
The property insurance may contains following types:
a) Fire and peril cover :
This types of property insurance may cover following activities: fire, lightning, employees strike, storm, cyclone etc.
b) Theft cover : Thus type of property insurance covers your company asset losses due to theft.
The property insurance may be applied for the following assets: computer, fencing, documentation, inventory material, furniture etc.
The cost to be paid to the insurance provider to avail cover benefits is depends on following factors :
i) Risk of natural calamities in your location
ii) Risk due to the working nature of your company
iii) Distance between fire station from your office
iv) Security system of your organisation
2) Professional liability insurance :
This is also known as errors and omissions insurance or professional indemnity insurance. This type of policy covers the mistakes done by your company while providing service to your customers and it helps to cover the cost when the customers sue your company.
This type of Corporate insurance may cover the following activities.
i) False presentation about the product or service
ii) Negligence in serving products
iii) Wrong counselling or advice to the customers.
The policy may not contain all the activities. There are only selective things which are covered under the professional liability insurance.
Types of professional liability insurance :
This type of Corporate insurance is divided into the following main types depending on the type of profession.
a) Medical malpractice insurance : It protects the physicians and healthcare providers from the claims registered by patient who thinks that you have provided wrong treatment to them.
b) Directors and officers insurance : The policy provides protection to the director or officers that are more responsible for taking the crucial decisions.
These offices and director personals are insured by their company.
c) Error and omission coverage : It protects the personal who are involved in counselling professional and personal advisors.
The professionals covered under this policy are lawyers, insurance agents, investment advisors, technical workmen’s, estate agents accountants etc.
The policy may contain different terms and conditions for the different type of professionals.
3) Workers compensation insurance:
This type of policy covers an accidental impacts on workers while working in company premises.
It is generally planned to provide medical care to the injured person and to compensate his salary loss when he is not able to continue working due to the injuries.
And if the employee died while working in company premises the policy covers the death benefit to the family of died employee.
It also provides coverage for the accidents of employees while travelling for the work purpose of organisation.
It never covers for the travelling to and fro from company to home.
4) Group Health Insurance:
It is the type of the corporate insurance which includes the health insurance for the employees who works together for the the same organisation.
The premium cost of group health insurance is much lesser as compared to individual health insurance.
The some of the group health insurance plans also includes coverage for the employees family.
In case of accident of employee the policy covers charges from ambulance to the cost of hospitalization and medical care.
The policy has low cost premium rate and more tax benefits.
Types of group Health Insurance :
There are two different types of corporate group health insurance plans:
a) Contributory plan: In this plan the employee has to pay some part of premium and the remaining part is paid by the employer.
b) Non contributory plan: In this plan the employer fully pays the cost of premium. The employees not have to pay anything for the coverage.
5) Product liability insurance:
The policy provides protection to the manufacturer or supplier when the products of manufacturer cause damage to the customer. This policy helps to protect your business from the liability claim made by the customers.
The policy can be applicable for all the product manufacturing companies, retailers, suppliers.
The companies which arr covered under this category are bakeries, clothing, restaurants, coffee shops, printing units etc.
6) Business interruption insurance:
This type of Corporate insurance covers the income loss of the business or company after the disaster or at the time of rebuilding after the disaster.
The losses covered under business interruption insurance policy are listed below :
a) The profits based on previous financial record.
b) The expenses for temporary relocation is covered under this policy
c) While the repairing of property the expenses which is required to keep the working continue without interruption is covered under this policy
d) Operation cost is also covered under this policy
e) Process due to government mended closure
Meaning of terminology used in corporate insurance:
The meaning of different terms used in corporate insurance policy are listed below:
1) Cyber liability : The coverage helps to cover the losses due to cyber attack.
2) Deductible : Depending onto the coverage plan the insured company has to pay an amount to the insurance company before starting your coverage period.
3) Claim : It is the requisition registered to the insurance company to demand for your coverage.
4) Blanket insurance : It is the policy under which all the property of insured person can gets covered.
5) Insured : The person, company, or businesses which are covered by insurance company is known as insured.
6) Premium : It is the cost paid periodically by insurer company in exchange of coverage provided by insurance company. It may be in the form of single payment, monthly, quarterly or yearly.
7) Grace period : when the insurer not pays the premium before due date then the time period is provided to the insurer before cancellation of his coverage is known as grace period.
8) Expiration date : It is the date when your policy cover gets terminated.
These are some of the basic terms which will be useful to understand the corporate insurance.
Corporate insurance providers companies in India:
Some of the companies which provides corporate insurance policies are listed below. We have provided the different companies as per different policies under corporate insurance.
Companies for professional liability insurance :-
a) Reliance general insurance
b) Tata AIG general insurance
c) United India general Insurance
d) New India Insurance
e) ICICI Lombard
Companies for product liability insurance :-
a) New India Insurance
b) HDFC ergo
c) Bharti axa general insurance
d) Bajaj allianz
e) United India Insurance
Companies for property insurance :-
a) New India Insurance
b) Bharti axa insurance
c) Bajaj allianz insurance
d) HDFC ergo insurance
Companies for business interruption insurance :-
a) Allianz global
Companies for workers compensation insurance :-
a) ICICI Lombard
b) Tata AIG insurance
c) HDFC ergo insurance
d) Reliance general insurance
e) National Insurance Company
Companies for group Health Insurance :-
a) Aditya Birla group health insurance
b) kotak Mahindra group health insurance
c) future Generali group health insurance
d) ManipalCigna insurance
e) Care group insurance
f) Bajaj allianz insurance
g) SBI insurance
h) Max Bupa Insurance
i) United group Health Insurance
j) Universal sompo Health Insurance
And such a many companies are available which provides corporate insurance policies.
What is not covered under corporate insurance ?
The activities which are not covered into the different policies of corporate insurance are listed below.
A) For professional liability insurance :
i) Criminal activities or frauds
ii) If employees are under the influence of alcohol while providing service.
iii) War activities
iv) Laws of market
B) For product liability :
i) War related damages
ii) Pollution liability
iii) Recall of product
iv) Products failure to meet needs
v) Product guarantee
C) For business interruption :
i) The income which has not included in financial records
ii) Losses due to pandemic situation
iii) Damage due to earthquake
D) For group health insurance :
i) In some policies the families are not covered
ii) Homeopathy, Ayurvedic treatment are not covered
iii) Congenital disease are not covered
iv) Treatment of AIDS is not covered
E) For worker compensation :
i) Injury due to the war
ii) The incidents not considered by workers compensation act
iii) The injuries occurred while workers are under the influence of alcohol or drugs
iv) The intentional injuries
Last words :
Therefore corporate insurance is the need of any organisation to protect their organisation in different difficult situations. It also helps to cover loss to the organisation and for the exponential growth of your firm it is necessary to carry suitable corporate insurance. By purchasing the corporate insurance the owner can save his organisation from loss which cause due to the different situations.