Pick the right risk cover policy for your business

A good business is an upshot of right planning and analysing. But there are many unexpected events in business that you may not be well equipped for. Risk is part and parcel of all business. Risks are unavoidable. A sudden fire, injury, lightening etc are some perils which our business could bear the brunt of.

Most business structures involve risk management as a critical element. If you plan to buy a risk policy, it is very crucial to know worst-case scenario your business might go through. Ensure that policy should be able to repay the full amount to cover total damage. Your policy document should include all major risk heads that need to be covered fully.

Depending on your business following are the available risk policies in the market and you can choose the right one to cover up for unfortunate damages:

• Fire policy: This is the most common risk cover accepted by most businesess. With large number of machinery and equipment, fire is the first risk that will come in your mind. Fire policy will include fire due to lightening, flood or forest fire. The protection cover will vary from business to business. There are also all-risk policies which would include damage caused due to standard calamities like flood, earthquake, fire. This is helpful for offices or plants with huge machineries.
• Declaration policy: This is a suitable cover against losses in the stock value. This is supportive when the stock value is lesser than the assured sum; here the remaining amount is paid by the policy company to overcome the losses.
• Loss of profit policy: This policy avails funds for re-establishing the business if the business has gone through severe losses due to specified causes mentioned in the policy.
• Robbery: this is also most common insurance policy opted by big businesses. Property is insured and amount can be covered at the time of theft.
• Machinery breakdown: This will cover the expenses when there is sudden machinery breakdown. Businesses that work with heavy machines cannot do without this policy.
• Terrorism: companies dealing with grand business have risk of horrifying terrorist attacks. There is also policy for such companies to overcome the consequences.
• Employee policy: this policy is most common in business where employees have major field work. They are insured and paid if they meet with an accident at the time of duty.