For corporations to run successfully, they are responsible for expanding operations, increasing profit and employing an efficient workforce. However, unforeseen circumstances such as theft, financial losses and employees’ health benefits and accidents can cause significant damages to occur. One of the most common ways for corporations to safeguard themselves from such losses and to keep the business running smoothly is by signing up for corporate insurance. An effective corporate insurance plan will take into account the size, location, industry and employee number of an organization before offering up the rates, premiums and types of insurance.
Types of Insurance:
Group Life Insurance
As employees become more aware of their rights and responsibilities, they are looking for more than just a monthly paycheck. Today, employees are expecting companies to look out for their well-being and that of their families, in other words, a remuneration package with employer-provided life insurance. With Group Life Insurance, an individual owner or an organization provides a contract to all the members of its firm as part of a complete employee benefits package in which all those who are covered receive a certificate of insurance. Just like with any other type of life insurance, you can choose your beneficiary. In this case, however, the master contract or the actual insurance policy remains with the employer. When it comes to payments, some employers end up paying for most of the premiums while others take care of the entire amount. Coverage amount again varies from case to case and company to company, but more commonly, it is equal to one or two times your annual salary.
Group Medical Insurance
In this, employers select the type of health insurance coverage to eligible employees and their dependents. With group health insurance, the employer is responsible for contributing a minimum percentage rate while the premium cost is split between the employee and them. Most businesses and organizers end up opting for Group Medical Insurance because the risk is spread among a wider number of plan members in the group pool. This balances out any unexpected high insurance cost of a particular individual allowing overall premiums to stay generally low.
Plain and simple, it covers businesses against losses in the case a property is damaged or an employee is injured. As risk varies from business to business, you as an employer need to be aware of what kind of coverage you will need and what covers to include whether it will be a public liability, professional indemnity, employer’s liability, or all three?
Public liability can protect you against compensation claims made by a third party and cover legal expenses due to any unforeseen mishaps carried out on your premises or on client sites.
Mistakes at work can be genuine and yet still end up causing serious harm, however, professional indemnity can protect a business from incurring severe financial losses.
It is a legal requirement in the UAE that if you employ one or more people, you have to offer employers’ liability insurance. This type of corporate insurance is set in place to protect you in the case of an employee’s (or ex-employee) injury compensation claims.
Certain industries such as Marine, Contracting, Aviation and Jewelers expect dealings with individuals who hold specialist insurance knowledge, have had previous exposure to complex risk issues and can design specialised corporate insurance solutions.
If we can learn anything from recent events, it’s to be better prepared for the unexpected. Corporate insurance is set in place so a business can continue to run its operations smoothly, even when a crisis hits. It offers protection to your company from facing financial losses and legal suits and safeguards the interests of your employees and their dependents.