Corporate Life: Analyzing The Benefits Of Commercial Insurances

commercial insurance

Every business, no matter the nature of its work, conducts its commercial activities with a certain amount of caution to avoid risk. Yet, nobody can predict the future fully, which is why insurance comes handy, particularly specific insurance for commercial entities. There are ways to protect your company from facing financial trouble, whether you are self-employed, own a small business or run a large conglomerate.

What is Commercial Insurance

Commercial insurance houses several different insurance products, and while some of them are required by law and others are optional, rest assured, all of them carry a single purpose: to protect your business against unforeseen circumstances.

Workmen’s Compensation/Employer Liability

Since hardworking employees are the key to running a successful business, it is essential to ensure the safety of these employees so they can work without hindrance and fear of risk. However, the chances of an unfortunate incident occurring are always present and this is where employer liability kicks in. Required by UAE Labour Law, this specific insurance provides medical support and compensation for lost wages to any employee who gets injured while doing their job. In many instances, workmen’s compensation insurance also covers repatriation expenses and legal defense costs.

General Third Party and Public and Product Liability

It’s in a company’s best interest to take full precaution when carrying out its act of business; however, it can never fully prepare itself against each and every unforeseen circumstance during sale, supply and delivery of goods. Unfortunate instances can include a visitor entering a building and falling due to uneven flooring or a client purchasing a product well past its expiry date. In these cases, a general third party and public and product liability coverage becomes compulsory for all kinds of businesses to protect themselves from setbacks against any negligence or loss as a result of third party personal injury or product and property damage.

Professional Indemnity

Companies make it a point to always keep their client satisfied, however sometimes situations can be mishandled due to oversight in which case a client has the right to make a claim against the business. Your employee may have lost important client data, offered poor advice or may have entered a breach of contract. Either way, mistakes do happen. In order to stay one step ahead and avoid both reputational and financial damage to your company, you can take out professional indemnity insurance.

Property All Risk

If you’re a business owner, your company holds meaning to you on all levels, whether financial, social or emotional. It is up to you to take all the necessary steps to protect both its structure and its employees from any harm. Unfortunately, you can’t plan for everything, including unexpected events such as fire, burglary and other accidental damages. Nonetheless, you can take the precautionary steps of acquiring property all risk insurance, which focuses on providing coverage against exactly such circumstances. Depending on the situation, the insured company should be able to reclaim the actual value or the new replacement value of the said property.

Companies have a lot of moving parts that need to work seamlessly in order for businesses to run, as usual; however, unforeseen accidents can cause serious claim issues. A variety of commercial insurance types are available for businesses to protect themselves against financial loss, mitigate any future damages and ensure their longevity in the field.