Running a business is no mean task. Along with ensuring that the business runs smoothly and remains profitable, there is another task that a businessperson must carry out — insuring their business property.
During such scenarios, having a property and casualty insurance or P&C insurance policy can be beneficial.
The term ‘property & casualty insurance’ covers a wide variety of general insurance coverage types, most of which are specially designed keeping business needs in mind. Let’s take a look at the coverage and the types of insurance plans commonly found under P&C insurance.
Understanding Property & Casualty Insurance Coverage
P&C insurance includes a wide-ranging variety of general insurance
coverage plans. Usually, it is available as a package policy that conveniently provides multiple types of covers under a single product to mitigate various business risks.
Depending on the insurance company, the coverage types may vary. It may also differ depending on what kind of business you wish to insure. A mega-corporation may be offered a different kind of package that covers large risks while a small or medium enterprise may be offered a package with limited scope.
Broadly speaking, property and casualty insurance provides coverage against floods, fires, earthquakes, lightning, and other kinds of natural disasters. Other aspects covered may include office damage, electronic equipment, liability coverage, workmen’s compensation, and more. Some P&C insurance plans may also have marine and cargo insurance coverage. *
Now, let’s take a look at the types of coverage plans commonly available with a P&C package.
Types of Coverage under P&C Insurance
As per your business needs, you may opt for the right kind of insurance coverage as you see fit, from the following:
Standard fire and special perils insurance
Fire is one of the biggest risks that most businesses, whether big or small, face. Hence, adequate protection against this risk and other special perils is vital for all businesses.
The standard fire and perils insurance policy cover losses to your property as well as damages to it, due to events such as accidental fire, lightning, explosion, and so on. In most plans, natural calamities such as earthquakes, storms, cyclones, floods, and so on, as well as man-made events like riots are also covered.
Additionally, damage caused by pollution and contamination, overflow of water tanks or leakage from sprinklers, and pipe bursting, amongst others are also covered under fire and special perils insurance coverage.
Burglary insurance coverage
Similar to the coverage found in home insurance
policies, this kind of burglary coverage provides financial protection against loss or damage to your business property due to burglary. It is to be noted that most commercial burglary coverage plans not only cover damage due to actual robbery but also provide financial coverage against attempted robberies.
As an astute businessperson, one must know the kinds of items and valuables within one’s property that can be covered by the burglary insurance policy.
Business interruption insurance
This kind of P&C insurance policy helps you recover from the interruption you may face in your business if an unfortunate event were to happen. Other kinds of P&C insurance policies may help in dealing with the losses and damage to the property. However, your business would also cease to operate normally as the equipment and other aspects require repairs.
The financial loss caused due to operational issues during such scenarios can be better handled with business interruption insurance coverage.
Workmen’s compensation insurance
If an employee of a business were to pass away or suffer from permanent disability, accidental injuries, partial disabilities, and so on, during their employment, then this policy can help deal with the costs. The financial compensation received from this policy can help the family members of the particular employee handle the unfortunate situation with dignity.
All risks insurance policy
Regardless of the steps one may take to safeguard their business and business assets from risks, there is always some chance that an untimely event could topple things over.
That is why one must choose an all-risks insurance policy to deal with the aftermath of such events. Whether it is the breakdown of fixtures or furniture, or bigger aspects like the entire factory property, or even your market-value stocks, the all-risks insurance policy is a kind of comprehensive package that covers it all. Some of the coverage plans mentioned above, such as fire and special perils coverage and business interruption coverage, may be available under the all-risks insurance policy too.
* Standard T&C apply
An important thing to keep in mind
A property and casualty insurance policy deals with a larger scope of things and has more complex coverage than insurance policies for individual coverage. Hence, it is important to choose a general insurance company that has the required expertise and is well-known in this regard.
Since your business and its resources are in question, it may help to consult a specialized commercial insurance agent or a financial consultant.
Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.