Broad Categories of commercial insurance
- Burglary Insurance
- Directors and Officers liability
- Workmen Compensation
- Gratuity Insurance
This policy indemnifies you against damage to your property caused by Fire, Lightning, or Explosions. It is specifically designed to cover the cost of replacement, re-construction and repair. Policy might also cover damage to any near-by structures or any personal property.
Marine Cargo Insurance:
The basic idea behind this policy is to insure you against any kind of damage to the ship, cargo. Indeed Cargo insurance is a sub-branch of marine insurance. In case, when goods are transported by courier, shipping insurance is required.
This policy indemnifies the proposer from the actual loss or damage caused by the burglars or during any burglary attempt.
Directors and Officers liability:
All top ranked officers and directors of any company are obliged to willfully perform their duty with high integrity, objectivity, independence, confidentiality by exercising professional skill knowledge and judgments. This policy hence is designed to protect them against any legal claims for any wrongful acts in performance of their corporate duties including omissions, errors, and misstatements, misleading statements, neglect or breach of duty.
According to chapter II of workmen compensation act 1923, if any personal injury is caused to workmen by accident arising out of and in the course of his employment, his employer shall be liable to pay compensation in accordance with the provision of this chapter.
Hence forth, it is suggested that all the employers should take the workmen compensation insurance, to cover up the risk of any bodily injury or death caused due to accidents of employees during the course of employment.
However, the employer is not liable to pay the compensation if:
- Injury does not relate to any fatal or partial disablement for period exceeding 3 days
- Any non-fatal injury is caused by the intake of drinks or drugs
- Employee did not followed the security measure or refused or willfully removed the safety guard device
As per the provision in workmen compensation act, below are the employees who are covered under this act, and all the employer with employees under this category should take workmen compensation insurance to cover the employers’ liability exposure under this act:
- Every employee (including who are employed through contractor but excluding casual employees) who is engaged for the purpose of employers business.
- Workers employed in any capacity specified in Schedule II of the Act, which includes factories, mines, plantations, mechanically propelled vehicles, construction work and certain other hazardous occupation and specified categories of Railway servants.
- Cooks employed in hotels and restaurants.
As per the provision of Gratuity Act, 1972, employees are entitled for a lumpsum payment during the time of retirement or exit from the company after completion of 5 years of service as detailed in the Act. For more details on calculation of the amount be paid, please refer Gratuity act. Thus, this statutory payment is a liability for employer for which he needs to maintain sufficient fund/ provision to meet company’s obligation. Gratuity Insurance thus helps the employer to meet their obligation on time.