What is Corporate Insurance?
According to the BusinessDictionary.com, the definition of an insurance goes like this: “Risk-transfer mechanism that ensures full or partial financial compensation for the loss or damage caused by the event(s) beyond the control of the insured party”. The ‘party’ here can be an individual or even a corporation or a public company.Corporate insurance mainly provides coverage for businesses. It provides protection against potential losses due to unforeseen circumstances, which may be theft, property damage and losses incurred because of interruption of business or injury to employees. There are many top companies in India offering business insurance, the likes of Life Insurance Corporation of India, Tata AIG General Insurance, Bajaj Allianz General Insurance, New India Assurance and ICICI Prudential Life Insurance.
Types of Corporate Insurances, Their Policies, and Benefits
In a corporation, individual benefits from the limited liability he has towards business debts. However, corporation officers, directors and employees can be subject to be held as financially liable for their own actions. This is where the corporate insurance, also called business insurance protects individuals involved in the corporation.
There are these following types of corporate insurances which can be bought by the corporation:
- General Liability
It is an insurance for the corporation to buy. Corporations can use this for being protected from any claim of negligence against company products, services and representatives. It covers legal claims resulting from injury of the accident and pays for costs incurred from libel, slander, bodily injury, property damage etc.
- Property Insurance
It covers loss and/or damage to company property post events like civil unrest, storm damages, vandalism, fires, earthquake etc. Most of the insurance policies declare business interruption, loss of income, papers and even money to come under damaged properties.
- Professional Liability
It is also called as the errors and omissions insurance. This insurance protects the company against claims of malpractice, negligence etc. from its own employees. It is different from General Liability in that the issues about negligently performing professional services are not covered. This insurance is very important for companies in the domains of law, finance, healthcare, accounting, and consulting.
- Directors and Officers Insurance
‘Directors and officers insurance’ shield directors and officers from claims of mis-management in company duties. Management liability claims are excluded from the general liability policy. This type of insurance is commonly associated with public companies, but private corporations can also use this to their benefit. Directors and officers insurance covers settlements, legal fees and other related lawsuit expenses.