Property and Casualty Insurance

Property and Casualty insurance offers a wide range of coverage options depending on the property that needs to be insured. It is also suitable for businesses by helping them mitigating risks and liabilities arising due to their business operations. If you want to know the premium of your property insurance, you can do it by using a property insurance calculator.

Let’s check them out in detail below:

Why Buy Property Insurance?

If you are an entrepreneur or an SME, Small or Medium Enterprise, it makes sense to buy a package policy that covers all the insurance requirements. It can offer insurance cover under Workmen’s Compensation Act including accident and health insurance, Money in transit insurance, public liability, fidelity guarantee, etc.

You can select the sum insured amount for different coverage sections as per your enterprise’s insurance needs. A Comprehensive package insurance policy could offer employer’s benefit policies like Group Health Insurance, Group Personal Accident etc.

One of the most purchased is the Fire & Allied Perils policy that covers the insured property from flood, fire, riots, and storm.  Shopkeepers and houseowners can get the valuables covered under All Risk Insurance Policies. And for loss of current assets due to theft you can go for Burglary & Home insurance policy. 

For instance, if your property gets damaged and is vandalized then with Property insurance policy you can get compensation for the damage incurred. And if a thief breaks into your house or office then also you can claim the coverage amount.

Different Types of Property Insurance Policies

Property insurance includes a wide range of policies. As an SME if you are not able to decide which property insurance would work best for you then you can check out the details of different property insurance policies below:

Package or Umbrella Insurance

A package or umbrella insurance is a type of property insurance policy that provides a combination of covers under a single plan. It can include office package policy, householder’s policy, shopkeepers’ policy etc. With this policy, the insured can get insurance coverage for buildings, contents, and various other assets etc. In addition to property cover, such policies can also cover certain personal liabilities.

Fire Policy Insurance

A fire insurance policy pays off any unforeseen destruction, loss or damage caused to a property due to fire or other perils. It also offers protection against aircraft damage, lightning, explosion/implosion, malicious damage, strike, riots, storm, flood, typhoon, cyclone, hurricane, impact damage, landslide, bursting of water tanks, pipes, bush fire, missile testing operations etc.

Burglary Insurance

A Burglary Insurance policy can be purchased for a house or for a business. It covers for loss or damage caused to the property contained in the premises as well as the goods if covered. You can get coverage for valuables, cash, securities kept in a locker if requested. In addition to the coverage for contents in the premises, it also covers damage caused to the insured business premises or house due to a burglary attempt or theft. It can further be extended for malicious damage, theft, riots, etc.

All Risks Insurance Policy

All Risks Insurance policy is designed to cover loss for jewellery and other portable equipment’s. The policy benefits may vary from one insurer to another and comes with some restrictions. Please note that the name All Risks doesn’t imply coverage for everything and anything. Just like other insurance policies, this one also comes with a set of limitations. 

Marine Cargo Insurance Policy

A Marine Cargo Insurance is a type of property insurance policy that offers coverage during transits via Rail, Road, Water, Air, Courier, and Registered Post Parcel.

Some of the other property insurance plans that are available include engineering insurance policies like the Machinery Breakdown insurance, Electronic Equipment Insurance, to name a few.

How is the Sum Insured Determined?

The sum insured for property insurance is usually determined using 2 methods:

• Market value- Using this method the insured is paid only certain amount, which might be insufficient to get the replacement of the damaged property. Because in case of loss at a price depreciation on the asset-based on its age
• Reinstatement value- The insurer recompenses the replacement cost up to the sum insured as there is no depreciation. However, it requires the damaged assets to be replaced or repaired to get the claim amount. It is valid only for fixed assets.

Casualty Insurance

A casualty insurance policy is a type of general insurance policy that offers protection to business against risks or liabilities arising within their business environment. With increased awareness and stringent regulatory regimes, it is essential for every any business to insurer themselves against complicated lawsuits. Nowadays, you can easily find tailor-made liability insurance solutions that cover a wide range of Liability exposures that you may encounter during or out of your business operations.

Liability insurance plans help in mitigating the risks and needs of both small as well as big enterprises across different sectors and industries. A casualty insurance policy indemnifies the insured against legal liabilities and third-party claims arising due to bodily injury or property damage incurred as a result of the insured’s business operations.

For instance, if a person gets injured due to an accident within the premises of your house or office and you are held liable for it, then casualty insurance policy will cover up the cost and pay for the loss or damage to the injured person and reduce your out-of-the pocket expenses.

Types of Casualty Insurance

Following are the different type of casualty insurance you can consider buying in India:  

Commercial General Liability

A Commercial General Liability insurance policy offers compensation to businesses in case legal liabilities involving damage or injuries to a third-party during business operations 

Public Liability Insurance (Non-Industrial & Industrial

This policy covers the legal costs arising out of bodily injuries or property damage incurred within the insured premises or operations.  It covers Industrial Risks for Manufacturing Units, Non-Industrial Risks for BPOs, IT companies, Hotels, Clubs, Restaurants and Schools. It is recommended for all businesses involved in handling hazardous substances as per the Public Liability Act, 1991.

Workmen’s Compensation Insurance

This type of policy covers the statutory liabilities of any employer towards their employees in case of death, injuries, accidents, permanent disabilities, partial disabilities, during employment. It also covers legal cost and expenses and can be extended to cover medical expenditures as well.

Pollution Legal Liability

Pollution legal liability insurance is recommended for companies operating in the chemical industry, energy, petrochemical’s, construction, etc. The policy offers comprehensive protection against various risk and exposure including clean-up cost, property damage, body injuries and environmental liabilities due to transportation.

Contaminated Product Insurance

This policy covers accidental contamination, malicious product tamper, adverse publicity etc.

Some of the other casualty insurance policies are Umbrella Liability Policy, Product Liability-Indian Market Wordings etc.

Things to Remember when buying Property and Casualty Insurance

While purchasing property and casualty insurance policy you need to consider the following factors:  

• Buy the property and casualty policy from IRDAI registered company only
• You can also buy property and casualty insurance online after comparing different plans
• Make sure that you read the policy wordings carefully and check the policy inclusions as well as limitations
• If buying it through an agent do check their license or identity card