Business is a set of processes running together to produce an output. The output could be a product
or a service or a mix of both. The running of several processes needs space, people, machinery and
supplies. Anything can go wrong in any processes at any time. To minimise the losses due to events
which occur during the normal course of business, this type of insurance is provided at a cost. This
covers the following during the course of the business,
Business Risk: The risk which arises out of normal running of business. A business may be
disrupted due to the natural calamities, war or other threats. This type of risk is covered for
the losses incurred up to the sum insured due to interruptions in businesses.
Property Insurance: During the course of the business, the property may get damaged and/
or the office/ factory equipment may get damaged. This type of plan covers these
Liability Insurance (public and employer’s): The product or services you are offering may
cause un-intentional damage to public or to the employees working. This insurance cover
any kind of claim arising out of such cases.
Group Mediclaim Insurance: To serve the employee better, the company provides health
insurance to the employee and their families which are covered under group mediclaim
policies in which number of people are covered for comparatively less premium with
Group Life-insurance: Similarly, if the number of employees is more, the company opts for
life insurance of all the employees as a whole and not as individual. This provides better
insurance cover at a less premium than the individual life cover.
Fire and Burglary insurance: Fire can happen anytime and also burglary. This insurance
protects the business from any kind of loss due to fire and burglary.
Legal insurance: At times, the business has to deal with the legal cases filed by either the
public or any present or ex-employee. This type of insurance takes care of cost arising out of
legal proceedings or damages which the company might have to pay.
The premium for all these type of insurance is calculated on a case to case basis and there is no
single formula which would calculate the cost of business insurance. Depending upon the type of
business, kind of employees, their age, region of business etc. determines the premium.