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Risk Management
Risk Management
Feature of the Business
Insurance Requirement
Employees of your business
Employers' Liability Insurance - Mandatory this ensures that you will be able to meet the cost of compensation for injuries to your employees
Employment Practices Liability Insurance - Optional
Covers the potential for unfair dismissal or discrimination claims and wrongful acts
Employees travel outside India in the course of employment
Overseas Travel Insurance - Recommended
If your employees travel abroad, you should ensure that they are protected and that the policy covers the destination and all the countries visited during any journey
General Public or any Third party could be affected by your business activities
Public Liability Insurance - Recommended
This covers your legal liability to pay damages to third parties for death, bodily injury or damage to their property caused by your business activities. Sometimes specific extensions to cover are appropriate, such as pollution risk and hazardous activities cover.
Supply of your products or components to customers
Product Liability Insurance - Recommended
This covers your liability to pay damages to customers for death, bodily injury or damage to their property caused by faulty products. Legal expenses are an important part of this cover, although a specific extension may be required.
Product Recall Insurance - Evaluate
This provides coverage for the costs of recalling a product known, or suspected to be, defective. Coverage may also be available for costs associated with issuing product warnings or taking other remedial actions. In some circumstances, it may be a requirement of your customers.
Your Business provides professional or design advice to customers
Professional Indemnity Insurance - Recommended
Protects professional businesses against their legal liability towards third parties for injury, loss or damage arising from negligent professional advice.
Theft or dishonesty by employees could be a problem
Fidelity Guarantee Insurance - Evaluate
Fidelity guarantee covers you against loss of money or stock arising from dishonesty by your employees.
Business occupies premises
Premises Insurance - Recommended
Your business premises should be insured for the full rebuilding cost with other add-on covers (Re-Instatement Value-RIV) and not just for the market value. This may be a landlord responsibility, however you occupying as a tenant can insure the premises
Premises has machinery stock or other contents
Contents Insurance - Recommended
Stock should be insured for its cost price without any addition for profit. Allowance should be made for seasonal stock fluctuations. Plant and machinery can be insured either on the basis of replacement as new or indemnity basis. Wear and tear is taken into account when settling any claims in the latter case.
Breakdown of KEY machinery or computers
Engineering Insurance - Recommended
Engineering insurance provides cover against electrical or mechanical breakdown for most machinery, including computers.
Your Business could be disrupted by fire, flood or denial of access to premises
Business Interruption Insurance - Recommended
Business Interruption insurance compensates you for the shortfall in gross profit and pays any increased working costs and fees following disruption to your business after an insured loss.
Your Business is involved in transporting goods or products
Goods in Transit Insurance - Recommended
Goods in Transit insurance provides cover against loss or damage while in your vehicle or when sent by carrier. The sum insured may be a limit for each vehicle or any one consignment. Special arrangements should be put in place for cash transit.
Business operates motor vehicles on public roads or requires staff to use their your Vehicles
Motor Third Party Insurance - Mandatory
You are legally required to insure your legal liability for injury to third parties and damage to their property arising from use of vehicles on public roads. If you allow the use of your vehicles for business use by your staff, you should check whether your insurance covers business use.
Motor Vehicle Insurance - Evaluate
Motor Vehicle policies are usually comprehensive or third party, fire and theft. You do not have to insure comprehensively all your vehicles. The decision to buy insurance can be taken based on the number and value of your vehicles and the loss experience
Business provides life or health benefits to staff
Life and Health Insurance - Optional
Provision and selection of Life and Health insurance benefits are an optional employment benefit, and the business should make commercial decision on the extent of cover provided.
Certain people are essential to the success of the business
Key Man Insurance - Evaluate
Protects your business against the loss of income resulting from the disability or death of a person in a key position.
Business would suffer in the event of a bad debt
Trade Credit Insurance - Evaluate
Trade Credit insurance covers businesses against the risk of bad debt due to the insolvency or default of their buyers or customers.
Directors and/or Officers' errors
Directors' and Officers' Liability - Evaluate
Directors' and Officers' Liability insurance provides cover for compensation and legal costs if they are found to have inadvertently acted outside their terms of reference or failed to fulfill their specific duties and responsibilities.
*Insurance is the subject matter of solicitation
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