Managing a business means looking after more than just your team and clients. It also involves protecting your office space, equipment and operations from unexpected events. Many businesses, whether large corporations or small firms, experience risks like legal liabilities, natural disasters, theft and even fire. All these dangers can lead to massive financial losses. Due to such reasons, office insurance becomes compulsory. In this blog, you will gain clear insights about the office package plan, what it covers, why you need it and more.
What is an office package policy and what are the coverage components?
The office package policy is a type of business insurance created to safeguard offices from various dangers under one plan. It blends many coverages so that you don’t have to purchase numerous separate polices. Here is what it covers:
- Fire and allied perils cover: It safeguards against damages to office contents and buildings because of earthquake, fire, storm, flood, explosion, etc.
- Theft and burglary cover: Covers the losses caused by theft of electronics, furniture and equipment or forced entry.
- Machinery breakdown cover: Covers mechanical failure and accidental damage to heavy machines used in the office, such as air conditioning systems or printing presses.
- Electronic equipment insurance: It covers damage or breakdowns of CCTV cameras, servers, printers, computers and even office electronics.
- Public liability insurance: This policy covers legal compensation and costs when a visitor or a third party gets injured at your workplace or their property gets damaged.
- Business interruption cover: This policy offers compensation for the lost wages if your office cannot operate because of a covered event such as flood or fire.
Exclusions in an office package insurance policy
Although the office package policy offers broad protection, certain exclusions apply. It does not cover damage caused by war, terrorism or nuclear risks. Losses without valid proof, such as missing invoices, are excluded.
The policy also excludes deliberate damage or fraud by business owners, mysterious disappearances and losses occurring outside the office premises. Legal fines or penalties unrelated to public liability, along with wear and tear or gradual damage to electronics and machinery, are also not covered.
Why do you need an office insurance policy?
There are no business owners out there who want to think of disasters, but in reality, anything can take place, especially in the fast-moving Indian cities. So, having a good office insurance plan can safeguard your hard-earned investments. It provides financial protection for your electronics, office buildings, furniture and other things in case of damage or loss.
It also covers legal liabilities, helping with expenses if someone files a lawsuit after an on-site accident. If operations are disrupted, it helps cover salaries and bills to keep the business running. Additionally, it protects against losses involving essential electronic devices. With such coverage, you can focus on growth without constantly worrying about risks.
Factors to consider before buying an office insurance policy
All policies are not the same. Due to such reasons, you must pick correctly based on your risk level, local and office type. Here are some factors that you should consider:
- Coverage requirements: You should list down what you need protection for, such as employees, electronics, natural disasters, etc.
- Sum insured value: Make sure the amount that is insured is enough to replace or repair all damaged office products completely.
- Premium costs: Compare the premiums from various insurers, but don’t choose based on the price. You should check what else it contains.
- Sub-limits and policy limits: Inspect how much is covered under every section and whether it’s enough for the business.
- Renewal and customisation: Pick insurers who offer easy renewables and also policy customisation.
- Deductibles: You should understand how much money you need to pay from your pocket before the insurer pays you.
- Claim settlement process: Always pick an insurance firm that is well-known for its hassle-free and fast claims.
Conclusion
The office package policy is an essential and wise investment for all businesses. It safeguards them from many risks, such as liability claims, equipment breakdown, theft or fire. Whether you are running a small business or managing a large corporation, this policy guarantees you don’t face any significant financial loss because of an unwanted event.
Besides that, it also consists of a property insurance that covers your valuable assets, interiors and even the office building against damage caused by flood, fire or other unforeseen events. This will help you recover quickly and dodge all monetary setbacks.
FAQ
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Does office insurance cover home-based businesses?
Home-based businesses can opt for an office package insurance to safeguard their operations and assets with no hassle.
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Does the office policy cover cyber and data risks?
The basic office plans might not include cyber coverage. However, you can get cyber insurance as an add-on.
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How to file a claim under the office insurance policy?
Inform the insurer instantly, provide proof such as bills, FIR or photos and then follow their claim procedure. The insurer will check and then settle the claim based on the terms.
Disclaimer: The information provided in this blog is for educational and informational purposes only. It is advised to verify the currency and relevance of the data and information before taking any major steps. Please read the sales brochure / policy wordings carefully for detailed information about on risk factors, terms, conditions and exclusions. ICICI Lombard is not liable for any inaccuracies or consequences resulting from the use of this outdated information.