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7 Reasons Why Your Company Needs Business Insurance

The Journal of IDCRO, a dentistry-related online magazine’s research, revealed that more than 50% of dental practitioners were not aware of the Professional Indemnity Insurance, 20% felt that it was not mandatory and 9.5% did not feel there was a need to purchase the insurance. The research concluded that there was a severe lack of awareness about this insurance despite rising cases of claims against dentists by patients.

This is just one example of a disturbing lack of awareness about the need and the importance of insurance for small businesses and individual professionals.

There are numerous ways in which insurance can help protect and cover businesses, which business owners may fail to consider. This article will detail a few of the many reasons why your company needs tailormade business insurances.

1. You want to be able to deal with uncertainties

Your assets such as the office space, vehicle, inventory are indispensable and extremely valuable to the success of your business. However, natural disasters, machinery breakdown, burglary, or lawsuits arising out of negligence, are risks that cannot be ascertained and have the potential to cripple your business. Hence, it only makes sense to protect these precious assets.  

Thus it’s essential for any company to have business insurance that can cover these losses. Large corporations can face lawsuits running into millions. SMEs might not be able to sustain the crushing financial losses that arise in fighting out legal battles or out-of-court settlements. Individual professionals and consultants, too, could face the risk of legal suits. Thus, opting for suitable business insurance, that serves as an umbrella to cover all kinds of company assets, is a wise decision for every kind of business.

In a nutshell, it would be okay to say that risks and dangers are always growing. Global warming has made natural calamities a more frequent occurrence. Your office premises may be physically protected but your business data faces the risk of cyber attacks What would happen if your customers file a lawsuit against you for losing their personal data to a cyber attack?, Would you have the financial resources to help your business stay afloat in such a scenario? This is where business insurance can help you live another day.

2. You want to get all aspects of your business covered

Every business is made of various components – employees, electronic assets, raw material, inventory, vendors, customers, third parties, and more. Events and happenings may affect any or all aspects of the business. This brings us to business insurance. Insurance cannot reduce the incidents of risk but it can be a financial tool to protect against expenses and losses.

The kind of insurance a business may need depends on the industry it operates in and the nature of the business. For example, a fintech company would require Cyber Risk Liability Insurance, whereas an SME that is into manufacturing clothes may not need it, if none of its business activities are online. Commercial General Liability, Professional Indemnity Insurance, and Directors & Officers Liability Insurance are among the most prevalent insurance plans in India and cover a whole range of business liabilities.

Business owners need to give a deep thought as to which are the areas of their business that require the purchase of business insurance plans. From the office building to equipment to inventory to business reputation – when one plans an insurance portfolio, there are many complex decisions and components to be considered.

3. You want to ensure your business is up and running after a loss

A bustling café had to shut down due to an outbreak of a disease caused by the eggs that were being served in the café. However, Business Interruption Insurance covered all their losses and expenses – staff salaries, vendor payments, and losses.  

Businesses are akin to a pack of cards. Building a business involves a lot of effort, time and monetary investments but the slightest error or negligence can bring the whole edifice crashing down. And if you don’t have the right insurance policies to protect you, you could be in for a severe heartache. Most businesses collapse in the event of not having insurances policies at the time of unexpected distress.

4. You want to protect yourself and others, too

Apart from protecting yourself, it is important for you, as a business owner, to have insurances that protect the key stakeholders – customers, employees, vendors, and investors, among others. One of the most important insurances for a business is the Commercial General Liability Insurance (CGL) that protects enterprises. It covers major claims that any business may face:

Bodily injury and property damage

Personal and advertising injury

Medical expense payment

Moreover, there is a difference between the liabilities of the business and its owners. A business has limited liabilities, whereas the business owners or directors have additional liabilities.

5. You want to enhance business credibility, attract talented employees

Employees are an asset for a business. A business also has liabilities towards its employees. Employers may have to face losses and expenses related to employees. A legal case filed against the employer by the employee on the grounds of discrimination, an employee getting injured in the course of performing a business activity or an employee being sued by a third party. These are some of the ways in which a business is liable to its employees’ protection in times of risks.

Group Health Insurance, Workers Compensation, Professional Indemnity and Directors & Officers Liability Insurance are some of the most prevalent types of insurances that businesses should purchase to protect their employees.

Here’s an example: Company X was on the lookout for a new CEO. Most candidates that were pursued declined the offer on the grounds that the company did not have a Directors & Owners Liability Insurance policy. It’s possible. Insurances improve recruitment opportunities for director-level roles and also promote higher retention. Some industries could be more vulnerable to legal risks towards its directors. Thus these types of insurances are essential for companies to procure in order to recruit and retain strong leaders, directors and decision makers.

6. You want to expand your business

As a business grows, so does its needs. Having a strong and comprehensive business insurance portfolio can help the owners and directors take important decisions while not having to worry too much about the personal and business legal ramifications. Expanding business requires confidence. Insurances provide a fair bit of confidence.

In the current landscape of startups and entrepreneurial initiatives, business owners  have an increasing urge to expand their footprint across the country, and in some cases, globally. International markets bring with them, new risks, challenges, new rules and regulations, which if not followed to the tee, might leave businesses vulnerable to legal risks. Certain sectors such as IT, knowledge-based sectors, outsource-related industries, and individual consultants such as doctors, architects, brokers, and business consultants, among others, should definitely have insurances in place to be able to expand their business to new shores.

7. You want to improve your business credibility

Insurance policies could help in improving business credibility and reputation, and instill trust in customers and new partners. Companies that face legal charges could face a lot of problems such as interruption in daily business activity, loss of productivity or low morale of employees, among others. Having the right business insurance policies would ease the company’s stress and burden, allowing it to function smoothly.

Having the right kind of business insurance policies could also help in creating confidence and trust in customers, in turn, leading to higher revenue. For companies that aspire to expand its business in the foreign markets, having business insurance can ensure it is prepared for new kinds of risks, rules and regulations. Having business insurance would instill confidence in new partners and collaborations, especially when expanding to new geographies and markets. Those companies that aspire to expand their business should seek guidance from professional insurance companies that can offer the right insurance solutions.

To sum it up

Business insurance can leave you confused, with the many factors that need to be understood before making a decision. This is why it is important to get business insurance advice from competent insurance companies who can aid you.

PlanCover can address your concerns and queries with unbiased solutions that would benefit your business. Moreover, PlanCover’s approach of transparency at every stage of the policy’s life cycle ensures that you know what’s happening with your policy. For more details visit our website.

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9 Types of Insurances Every Business Should Have

In 2011, a multinational company in the business of electronics, entertainment and gaming revealed that the data of its 77 million gaming network users had been hacked, severely compromising sensitive personal information of the numerous gaming enthusiasts in its fold. As a result, the company faced several lawsuits and complaints from aggrieved customers.

The company and its insurer fought a long legal battle. The insurer denied the company’s claim, as third-party hacking incidents were not covered in its Commercial General Liability Insurance.

Not only business giants and corporate companies, but small and mid-sized businesses are 62% more likely to face cyber attacks, according to a survey by IBM. While some companies with insurance policies and procedures are able to recover money and get back on their feet again, most are not so lucky and face dire consequences, including shutdown.

Building a business is hard, but rebuilding it even harder!

Insurance for small and medium businesses is as important as a foolproof business plan.

Protecting the office premises. Guarding against theft. Safeguarding the business against loss. Being prepared for machinery breakdown. It’s all in a day’s work for small and medium businesses!

From the day business owners start a business; they are exposed to a number of risks. Thus, it’s essential that every business should have all the necessary insurances in place to protect it against uncertainties.

However, many new entrepreneurs and business owners might find themselves at sea when considering insurance options. Not surprising, as there are a plethora of insurances to choose from, their terms and conditions are often complex, ambiguous, and open to interpretation. Moreover, it’s no easy task to understand what are the kinds of insurances your business requires. Through this article, we will simplify this task for you.

Here are nine types of insurances that small businesses definitely must have.

1. Property Insurance

Property insurance is a safety net for any of your business’ property, owned or leased, against damages and risks. Office, shop, warehouse, factory as well as machinery, tools, inventory and electronic equipment are assets or properties of a business. Property insurance typically covers damages and losses due to theft, fire, and losses due to unavoidable circumstances.

This insurance may cover material damage and increased cost of working due to the damages. However, it might not cover wear and tear, depreciation of assets or willful acts of destruction. Every business that owns property should consider purchasing this policy to ensure the protection of physical assets against events such as fire, accidental damage, theft, and natural disasters, among others.

2. Commercial General Liability Insurance  

Small businesses are specifically exposed to various forms of liability claims. At times company products, services or employees may cause bodily injury or property damage to a third party- customers, vendors, suppliers or non-employees.

In such a situation, CGL insurance could provide compensation. CGL covers both the legal costs and settlement costs for the damages caused.

Every business, small, mid-sized or large, should definitely have CGL insurance. The advantages? Apart from protection, it implies legitimacy and could add value to your business, enhancing the business reputation and business growth. In a nutshell, it protects your business from monetary losses occurring due to legal liabilities from third parties, such as customers or vendors.

3. Business Interruption Insurance

Imagine a disaster such as a cyclone, an earthquake or riots bringing a temporary halt to your business activities; or an accident such as a fire affecting business and resulting in financial losses. That’s when Business Interruption Insurance can help you keep the wheels of the economy running.

Also known as Consequential Loss of Profit Insurance, this insurance would protect your business in times when it is unable to operate due to a disaster that is covered under your property insurance. It helps small and mid-sized businesses plan and manage for uncertainties and could cover your business against the loss of income and the increased cost of working, too. This means you are prepared to get your business up and running after uncertain incidents.

4. Directors and Officers Liability Insurance

Let’s face it – most often it is the business owners, directors, and the decision-making employees who have to face legal actions. Just because your small business is privately held and not listed, doesn’t mean you are free from that risk. Among the different types of insurance for small businesses, the Directors and Officers (D&O) Insurance is particularly specific to directors, managers, and employees who are empowered to make decisions for business in a company.

Here are some D&O Insurance basics: D&O Insurance provides financial protection for directors, officers, and managers, in the event of a claim against them. It pays for defense costs and financial losses resulting from a lawsuit.

Reports show that D&O insurance claims have increased manifold in the past years, which makes this insurance even more relevant for businesses. This insurance can help directors and owners take important decisions for the business while not having to worry too much about the personal legal ramifications.

5. Employee Health Insurance Policy

Employees are every company’s biggest assets. Companies need their best resources at all times. Employee health insurance is designed to address employees’ and their family members’ health needs. When the situation arises, this insurance helps shoulder the hefty medical costs – a benefit for employees. It is also an incentive for employers to find and retain talent. Besides, the good health of your employees often translates to better productivity at work, doesn’t it? Most employers prefer purchasing group health insurance policies for their employees.

6. Errors and Omission

Also known as Professional Liability Insurance, this insurance is most helpful to businesses that provide professional advice and operate in high-risk industries.

It protects against negligence, mistakes and errors committed. Typical examples would be the infringement of intellectual property, copyright issues and reputation damage to a third party.

The Errors and Omission Insurance might come to your rescue when you face legal claims of committing errors that cost your customers’ money or intangible damage. This insurance covers the cost of expenses arising from legal procedures such as settlement charges, attorney fees and legal representation costs during a lawsuit. Businesses providing professional services to their customers should definitely have this insurance. For example, technology companies, consultancy firms, individual professionals (designers, engineers, doctors, business consultants, and accountants) among others.

7. Public Liability Insurance

Did you know? As a business owner, you are not only liable to your employees, customers and all those directly related your company; you are also accountable to the public in general. A random visitor getting injured in your office premises, your neighboring office facing damages due to an accidental falling of fixtures in your office, and other such instances are your liabilities. That’s where Public Liability Insurance could be a knight in shining armor. It can cover all the amounts, and legal expenses, too. However, this insurance will not cover intentional damage, or if a company has released a defective product or service in spite of knowing about it beforehand.

8. Employees Compensation Insurance

Employees are assets for companies. In the event that they suffer accidents, either directly related to their jobs, in or outside the work premises or due to other factors during the course of the employment, the Workers Compensation Insurance or Employees Compensation Insurance would cover the company’s liabilities towards the employee. Events such as disablement (total or partial), death or the contraction of an occupational disease, are covered under this insurance.

9. Office Package Policy

Small business owners invest heavily in their enterprise. The commitment is emotionally, physically and financially draining. Thus, you need to protect your business against unforeseen uncertainties and risks that could plunge you into irreversible losses from which you struggle to recover. It could cripple your business or make it dysfunctional and in the worst case, might even force you to shut shop.

This is where having a compact policy such as an Office Package, which covers a whole range of risks, can come to your rescue. It covers furniture and fixtures, tools and machinery, office building, legal liabilities to third parties, additional rents, and even terrorism, in some cases. This insurance could help you out of a hole in a number of unexpected situations.

Apart from these nine types of insurance, there are a number of other policies specific to different aspects of business, such as Product Recall Insurance, Group Accident Insurance, and Cyber Risk Liability, among others. Moreover, different industries might have different insurance needs.

Explore options for business insurance

Circumstances, contexts, occurrences, and risks of each business will vary greatly, but considering all the insurance options for your enterprise would be a wise thing to do. Insurance is a boon. And it is up to the business owners to tune into its benefits.

If you’re looking for insurance companies in India, for business insurance advice, you can explore the insurance policies offered by PlanCover. From protecting your office premises to office owned vehicles to protection against theft – PlanCover offers a wide range of policies that cover each and every business risk. For more details visit our website.

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Why Your Business Needs the Directors & Officers Insurance

In 2016, an ousted director of a corporate company brought about a retaliatory lawsuit against the other board members.  However, the company had a D&O (Directors and Officers) cover to protect its board members. The 2018 #metoo movement in India triggered many companies to purchase and protect their directors against legal actions. Although not compulsory, having the Directors & Officers Liability Insurance ensures that companies are not adversely affected.

If you aren’t aware of the D&O Insurance and wondering if you should get one for your business, this article will tell you a lot about D&O Insurance basics and help answer a lot of your questions.

What is D&O Liability Insurance Policy?

It’s a policy specifically designed to protect directors, officers, managers and the decision-making employees of a company in the event of a claim against them. This insurance policy pays for legal defense costs,  financial losses resulting from lawsuits. The D&O Insurance is not mandatory as per the Companies Act 2013. However, a lot of companies opt for this policy to safeguard their management.

Employees, customers, investors, vendors, competitors, or regulatory bodies could take legal actions against directors and decision-making officers for various reasons. Some of the common reasons for lawsuits against directors and officers are:

Knowingly allowing employee harassment

Failure to comply with regulations

Deliberately misleading with wrong information or misstatements

Discriminatory practices

Errors in managerial conduct or breach of duty

Negligence, default

Breach of trust

Lawsuits, claims and settlement amounts can be extremely high and could add up to huge losses for the business. The D&O insurance can shoulder such losses.

Why and how are directors liable?

In order to understand this insurance, it is important to first understand the personal liability of the directors and officers connected to the company. A company can have limited liability, but that’s not the case with its directors. Directors and officers have several liabilities. It is a directors liability to pay for losses incurred by the company in case of negligence, misconduct, and breach.

They are bound by duty towards all stakeholders – employees, customers, competitors, government, regulatory bodies, investors and shareholders. Any violation or misconduct can end up in a lawsuit against them. At times, even with care and caution, things can go wrong. What happens then? A D&O Liability Insurance policy can provide relief to them.

What are the risks covered by the Directors & Officers Insurance?

Regulatory investigation related issues

Accounting discrepancies

Mergers and acquisition related risks

Liability to claims by shareholder/stakeholder

Employment practice damages, such as harassment and discrimination, failed promotion

Securities claims related to shareholders

Corporate Governance requirement and compliance

Having a D&O Insurance policy is not compulsory for all businesses. But it is beneficial to a lot of businesses across industries. A number of companies do not purchase a D&O Insurance policy because they have never faced any such issues in the past. Thus, they are unaware of such a policy and its benefits and they are under the impression that because they are a small, family-run, unlisted company, their directors and officers are not exposed to such risks. They could be extremely misguided.

Why should a business have a D&O policy?

Another key point to note is that according to the Companies Act 2013, it is not possible for companies to indemnify the losses suffered by the directors if they do not have a D&O policy. This makes it critical for companies to have D&O insurance.

It is important to consider all the risks and determine if a company should purchase this policy. Some of the reasons companies should consider purchasing this insurance are listed below:

Increases company credibility: This insurance policy is not a replacement for or guarantee of sound management, but it helps reduce apprehensions of director and officer-level employees that a company might want to bring on board.

Instills confidence in decision-making: This insurance can help directors and owners take important decisions for the business while not having to worry too much about the personal legal ramifications.

Ensures smooth functioning of business: Companies that face charges against directors and managers go through a lot of problems in the daily business activities, such as, loss of productivity, negative impact to company culture, low morale of teams and employees and company reputation affecting business.

Improves recruitment opportunities for director-level roles and higher retention: Some industries could be more vulnerable to legal risks towards its directors. It is essential for companies to recruit and retain strong leaders, directors and decision makers.

Helps in business expansion and growth in foreign markets: With the increasing need for businesses to grow globally, Indian companies are assessing international markets. This includes new risks, challenges, new rules and regulations, which if not followed to the tee, might leave directors vulnerable. Certain sectors such as IT, knowledge-based sectors, consultancy firms, and outsource-related industries, should definitely have a Directors & Officers Insurance.

What are the types of losses that D&O insurance covers?

Legal expenses and fees, defense costs, bail bond, and civil bond expenses.

Damages and Settlement costs

Public relations expenses that may be incurred in order to reduce or prevent negative publicity.

Costs for having a legal advisor

What are the claims that the policy might not cover?

Deliberate and intentional wrongdoing

Criminal fines and penalties

Dishonest and fraudulent conduct

Claims relating to personal profits

Breach of contract

Defamation and slander claims

Why do SMEs need D&O Insurance?

The environment in which SMEs operate is dynamic and fast moving. Most SMEs require the management to be closely involved with the day-to-day activities and participate in decision-making processes. Moreover, the pace of activities and decision-making could leave businesses exposed to the dangers of making wrong decisions, not following regulations and more.

Managers of small businesses are accountable to the company’s stakeholders- customers, vendors, and investors, among others and hence, are at a risk of facing legal actions. They are not insured by other policies that businesses might have, such as Fire Insurance or General Liability Insurance. Apart from that, there could be issues such as sexual harassment, issues related to Human Resource and more, that can be covered by insurance.

Since company managers and directors are closely involved with the business in SMEs, they are highly susceptible to lawsuits from different stakeholders. In fact, a company’s managers are not insured by policies such as fire or general liability policy.

In such a scenario, an expensive lawsuit could have severe effects on the director’s personal net worth. To protect employees in such a situation, it is important for small and mid-sized enterprises to purchase a D&O policy.

As businesses grow, an increasing number of investors are holding directors and managers accountable in order to improve practices. PlanCover, an insurance company specializing in SMEs insurance can help protect your business with the D&O insurance.

PlanCover would address your queries and concerns with unbiased solutions that benefit you. Moreover, PlanCover’s approach of transparency at every stage of the policy’s life cycle ensures that you know what’s happening with your policy. For more details visit our website.

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5 Factors that Determine the Choice of Group Health Insurance

Employees are considered to be the biggest asset of a company. For organizations, employee benefits are key drivers in recruiting and retaining competent talent. Jobseekers often carefully weigh the benefits attached to a prospective work opportunity during the recruitment process.

Most companies purchase group health insurance policies for their employees and in many cases, for the employees’ families. Employers buy health insurance plans for their employees, and the concerned employee is expected to pay a part of the premium. Group insurance benefits the employees as they have to pay a lesser premium compared to what they would have to pay if they bought a health insurance policy on their own.

What is group health insurance?

Group health insurance, also known as group mediclaim, and corporate health insurance among other terms is a formal contract between an insurance provider and a group of people that are part of a recognized group, a legal business entity, an organization or an association. Under group mediclaim insurance, a single policy is issued to the group and each member might be given a certificate of insurance.

Now let’s look at who can purchase a group health insurance. Group health insurance is usually purchased by employees and employers groups that are part of a business. Group health plan purchase is common in religious and spiritual bodies and societies, non-profit organizations, and housing societies, among other groups.

Why should companies consider group health insurance plans?

Group health insurance plans are cost-effective, both for the company and the employees.

They provide medical expense coverage to the employees and their families, which is a way of showing employees that the company cares for them.

Employee health benefits have shown a 25% decrease in sick leaves, in worker’s compensation and disability pay.

98% of the employees who had health check-ups experience a higher quality of life.

Purchasing group insurance plans may offer tax benefits to companies.

Employers can help protect the savings of their employees by providing them health insurance.

Companies can provide quality health care to their employees.

Businesses face competition and pressure from competitor companies that provide benefits to their employees. Employers could use group health benefits to provide similar benefits.

Determining the most effective group health insurance

Most insurance providers offer group insurance plans. However, companies should consider key factors, such as the product, cost, and service, among others, to determine the most efficient group insurance policies. Here are a few key factors to consider when choosing a group insurance plan.

1. The number of employees

According to the IRDA, a company must have a minimum of 20 employees to be able to apply for a group health insurance policy. However, this number can vary depending on the insurer. Some insurers provide group health insurance to 10 employees as well.

2. The benefits of group insurance for your employees

Companies can ensure they make the right choices of insurance policies by holding discussions and surveys among employees to determine the needs of each employee or different sets of employees. Companies should consider both, the medical requirements and the ability to pay premiums with respect to the employees’ income.

Companies could consider factors such as the employees’ age, family members, medical conditions and salaries and bracket employees in certain predefined categories. Employers can then find the most suitable health plan for the different groups of employees. For example, employers could go for an individual plan that covers only the employee or a triple cover that covers the employee’s spouse and children, for those employees that prefer coverage for their family members, too.

3. The premium and review rates

Just because one insurance plan is cheaper than what another company might be offering, does not mean the cheaper option is better. Employers must consider the kinds of benefits and coverage provided under different plans and rates. A comparative review of a few selected plans from different insurance companies could help employers assess the most suitable plan for their company.

Here’s a tip: Requesting for bids and quotations from at least two or three or more insurance companies would help you determine the suitable policy.

4. The service provided by the insurance company

It is essential to ensure that the insurance company is providing you with top-notch service.  There are many factors to consider here. Is the insurance company prompt in attending to your queries? Do they have helpful customer service?

Here’s a tip: Ask the bidding companies to provide references from within the industry. Speak with the recommenders and clear your doubts.

5. Is there a possibility of tailor-made policies for companies?

Unlike individual policies, organizations do have the option of tailoring the terms of the policy to meet their employee needs. These are some aspects that group policies can and should look into:

Coverage for diseases existing during the time of purchasing a policy

Policies that do not have a 30-day waiting period

Policies that do not have a waiting period of 1 or 2 years

Policies that provide maternity coverage with or without a waiting period of 9 months

Policies that provide Baby Cover from day 1 of birth, which is otherwise covered after 90 days

Amount of maternity depending on the kind of delivery – Normal and C-Section

Policies that include or exclude certain kinds of treatments

Policies that allow Corporate Buffer. (If an employee expends the sum insured, the management could add an additional amount

Policies that offer co-payments, where the amount can be borne by the employee as a percentage of claim, which can reduce premiums

Is it time to revive your group insurance benefit programme?

The landscape of the Indian job market and workers benefit is changing with new companies entering the market, employees being more aware of the benefits that they can receive at their workplace, and organizations, too, wanting to offer the best to their employees. However, a number of companies still follow the same approach to selecting group health insurance plans. Companies end up opting for the same plans with the same insurance provider that they have been partnering with for years.

Convenience, trust, lack of time or lack of enthusiasm to explore new offerings, whatever may be the reason, a lot of companies that do not revive their employee health benefits programmes could risk losing key talent because of this reason.

Are you an old company looking to revive your company’s group insurance plan? Or are you a startup looking to offer health benefits to your employees? You could explore group health insurance plans offered by PlanCover.

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Commercial General Liability Insurance – An Essential For Any Company

Occurrences and accidents can happen unexpectedly. A food delivery boy who came to deliver to your office fell from the stairs; your next door office premises got damaged because of repair work undertaken in your office, or an advertisement you published hurt your competitor’s business. These are all incidents that can leave your company legally liable if the third party files a lawsuit against your company. That is when the Commercial General Liability Insurance (CGL) Insurance can provide some relief to the company.

CGL is one of the most basic business liability insurance that every company must consider. From the time a company is formed and the business starts operation, it becomes liable. A failure to understand this or the lack of awareness could cost a company, money or even a shutdown.

Whether you are a small manufacturing unit, a stationery store or an individual contractor, if you think you are “too small” to the possibilities of legal risks, you might be being ignorant. Here are some key points about CGL Insurance that will change the way you think about your business and insurance needs:

What is CGL Insurance?

CGL is a liability insurance that covers third party losses only. CGL Insurance provides financial cover against liabilities arising due to bodily injury or property damage to a third party. A third party could be anyone- a vendor, a stranger, a visitor, a person working in the next-door office, a neighboring office premise or a passerby. Damages could be caused by a product or service that a company provides on or off the business site.

The CGL coverage provided by the policy would be related to the expenses such as payment towards the repair of property damage, medical and hospital expenses of an injured person, and claims against psychological damages faced by the third party, among others.

Here’s an example: Recently, a business owner invited his friend for a post-work jam session in his office. His friend fell off a ladder. The visitor sued his friend (the business owner), the company to which the office premises belonged and a third company that owns the building. In this case, the injured made sure that he filed claims against all the parties involved. In a nutshell, every business is liable.

What are liabilities for a business?

Liability in business means a company is responsible for any damages occurring to a third party due to the company’s business activities. As soon as people decide to start a business, they are exposed to a large variety of liability risks. In a number of cases, even though a business might not be at fault, the verdict in a court of law could still be against the business. In such a case, insurance coverage can help ease the burden of losses and expenses that a company might face.

What are the risks covered by the CGL Insurance?

The Commercial General Liability Insurance policy covers both, public and product liability. What does that mean? It means that the insurance covers losses arising due to bodily injury or property damage to a third-party due to:

A company’s business activity

A company’s products or services

Due to advertising injury

Medical expenses of the third party, personal or psychological injury to the third party and property damage expense claims are risks that can be covered by the CGL Insurance.  

What are the types of losses/expenses covered by CGL Insurance?

Now we know that the Commercial General Liability insurance policy covers liabilities arising due to third party injuries and property damage.

These are the costs it could cover:

Medical expenses of the injured

Legal expenses in case of a lawsuit

The lawyers’ fees

Court-related expenses

Settlement expenses in case the company loses the lawsuit          

Damage caused by the product or service of a company

Legal costs of product liability lawsuits

Expenses arising from advertising injury such as the invasion of privacy

Reputational injury lawsuit

Infringement of copyright or trademark

Slander

Legal costs

Why should a business have Commercial General Liability insurance?

Every business has general  liabilities and hence it would make sense that all kinds of enterprises – small businesses, individual contractors, distributors, manufacturers, wholesalers and retailers, and large corporations – should consider having a business risk insurance such as CGL.

The industries most susceptible to claims that fall under CGL are manufacturing units, advertising and media firms, companies providing services and products, and businesses that operate out of office premises, among others. Even individual contractors such as architects, business development consultants, and freelance professionals could give themselves a safety cushion in uncertain occurrences with the help of CGL Insurance.

What are the claims that the policy might not cover?

In case fines and penalties are charged

When a product is recalled by a business

If a product or a part of it is repaired or replaced

In case of willful or deliberate non-compliance with statutory provisions

When there is a copyrights, patents or trademarks infringement

In the case of radioactive toxic explosives or other hazardous materials

If the claims are made prior to policy inception

Under the circumstances of war risk and terrorism

Why do SMEs need CGL policy?

No matter how large or small a company, businesses have several liabilities. SMEs operate in vigorous and fast-moving market environments. Many business owners assume that they might not need the CGL Insurance or that it is just an unnecessary expense for the company. But what about the liabilities mentioned above? Business owners fail to understand that they are susceptible to risks.

Imagine that your neighboring office premise is damaged because of repair work in your office. Upon inspection, the neighboring office is deemed unfit for occupying it and has to be brought down. Even the smallest of damages can cost your company a fortune.

In such a scenario, an expensive lawsuit could have severely debilitating effects on the company’s worth. To protect the company from severe losses and expense, it would help if small and mid-sized enterprises purchase a CGL policy.

If you’re looking to purchase a CGL policy for your business, PlanCover would address your queries and concerns, and help you with your business insurance plans. Moreover, PlanCover’s approach of transparency at every stage of the policy’s life cycle ensures that you know what’s happening with your policy. For more details visit our website.

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Errors and Omissions Insurance – Even The Most Successful Companies Require It

“The greatest mistake is to imagine that we never err.”

There are times when a professional error or negligence on the part of a company could cost a customer reputational and monetary losses. At such times, the company is legally liable to pay for damages incurred by the customer. This could run into lakhs and crores of rupees and could financially cripple a company.

Let’s look at a few examples to understand this.

Example 1: Company X is the insured – an IT software services company that sells and installs a computerized system for a client – an e-commerce company. As the IT services provider, company X is also responsible for regular maintenance and system support.

A software upgradation lead to erratic behavior and eventually, the complete failure of the portal. As a result the e-commerce company had to shut down the portal access and suffered loss of finances. The client sued company X for negligence in service performance.

The claim was filed under the E&O Insurance policy for “Professional Negligence” and “Failure to perform” and the damages claimed were for the loss of revenue and damage to reputation.

Example 2: A well-known clothing brand employs a freelance fashion designer to design a new collection. The freelancer uses the image of an artist’s painting as a print on one of the textiles. The clothing brand introduces the new collection. The artist gets to know that her painting has been used without her permission. She sues both, the freelance designer and the clothing brand.

Circumstances and nature of incidents may vary across different industries, but it is essential for enterprises to have some kind of cover that can protect them during these sort of trying times. This is where having an Errors and Omissions (E&O) insurance could prove to be particularly beneficial.

Errors and Omissions Insurance can ensure that companies are able to deal with setbacks and can avoid adverse effects on their business. E&O is one of the most common liability business insurance that is suitable for small business owners, large corporations and even individual contractors and professionals.

If you need an E&O Insurance and want to know more about it, this article is perfect for you. And even if you haven’t considered or have decided against purchasing one, read on further to understand why you might want to reconsider your decision.

What is Errors and Omissions Insurance?

Also known as Professional Indemnity Insurance or Professional Liability Insurance, it is an insurance that provides financial coverage in the case of claims against errors, omissions, negligence and wrongful acts. This insurance pays for compensation for lawsuits from third parties and defence costs.

What does an E&O Insurance cover?

Errors & Omissions insurance policy covers the professionals, employees, partners, and a professional’s company or partnership for damages directly caused by providing or failing to provide professional services.

What are the third party expenses or losses that can be compensated by E&O?

Expenses towards settlement and judgment charges

Court, legal representation expenses and lawyer fees

What are the exclusions of E&O Insurance?

Intentional and wrongful acts

Illegal acts, criminal acts

Violation of law

Services provided under a different name than the one in the policy

Fines and penalties

Bodily harm or property damage

Illegal discrimination

Insolvency or bankruptcy

Copyright or trademark infringement

Liabilities against any other person insured in the same policy

Reasons why you should have Errors and Omissions Insurance

When starting a business or conducting one, it is important to have a good understanding of the professional liability risks involved. It would help companies and individuals to plan their insurance needs.

It will provide financial support against intangible property

Whereas the General Liability Insurance covers damages that arise out of bodily injury and property damage to the third party, E&O Insurance helps in covering liabilities arising out of intangible damages such as infringement of intellectual property, damage to reputation, breach of data, plagiarism and slander, among others.

If you (company) have been sued, the insurance will pay for your court and legal expenses incurred and any settlement costs if you are proven liable to the third party. Even if you aren’t held responsible, the E&O policy will compensate for your legal and lawyer expenses. Companies that operate in high-risk industries such as media and entertainment could face legal claims for small errors, too, that could prove extremely expensive.

Similarly, those companies in the tech industry that provide services such as IT, Consulting, AI, among others, should definitely consider this insurance because the chances of risks related to malfunction, errors, and breach are higher in this sector.

It protects individual consultants

Doctors, lawyers, freelance professionals, contractors, architects, business development consultants, and dieticians, among others, who offer professional services and consultancy, are especially prone to the risk of getting sued for negligence and failure to provide the expected services. Thus, it’s imperative for them to buy a Professional Liability Insurance that can protect them in case of a lawsuit.

It can benefit small business owners

Small business owners may not want to avail themselves of every kind of business insurance plans. For example, contractors and freelancers who work from home or shared office spaces might not want to purchase business property insurance or commercial liability insurance plans. However, purchasing an E&O Insurance can protect them against personally paying hefty amounts of money to a client, who legally demands compensation for perceived service-related damages.

Rising awareness has increased claims

There have been several cases involving claims against hospitals and medical experts on the grounds of negligence. The number of cases is on the rise as consumers are now more attuned to expecting the highest quality of professional service and are quite willing to take legal recourse for promised services that are not up to scratch.

E&O is most beneficial to companies that work in the media and entertainment industries, where the risks of copyright infringement, defamation, and privacy violation are rampant. Errors committed unknowingly can cost media and entertainment industries a truckload of money, in either settlement cases or paying damages due to a lawsuit and on legal fees.

It can help you get more business

Not many do it, but some potential customers might ask companies and contractors to show their E&O Insurance before signing a contract with them. The reasons: it gives clients the confidence that the company/contractor can be trusted. It could be a big source of relief that they will be covered in the event of damages due to negligence on the part of the vendor providing them the service.

Are you still wondering if you should buy an E&O Policy for your business? If you’re looking for insurance companies in India to seek business insurance advice, you can explore the insurance policies offered by PlanCover to protect your small businesses. For more details visit our website.

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Why Does Your Business Require a Fire Insurance Policy

Technology is a double-edged sword. Even after you use the latest ones and take every precaution you possibly can, you never know what might trigger a fire. The foresight of fire is seemingly impossible. Not only electrical malfunction, but a fire can also be the result of a careless employee forgetting to stub a cigarette or an employee forgetting to shut the stove in the office pantry.

In December 2017, a building in a prominent commercial complex in South Mumbai had caught fire, causing loss of lives and property damage. The building’s fire insurance had expired just a few weeks before the incident and the owners couldn’t claim any damages. A business, however small or big, could face dramatic unexpected circumstances, which could cripple and ruin the business. However, you can be a step ahead by buying an insurance plan for your business. It is compelling to obtain fire insurance for your business as it can cover a lot of risks, including a complete shutdown of the business.

If you are still giving ‘Fire Insurance’ seconds thoughts, here are a few crucial aspects that could help you make a wise decision:

Need for financial coverage

Fire insurance usually covers machinery and equipment, stock and inventory, furniture and electronics and the building. Having fire insurance can do a lot of damage control. Most of the fire insurances provide a cover from damages caused by fire and even suppression materials. Not only fire but fire-repellent materials like water, powder, and foam, which are used to douse flames, can damage the business property. If you don’t have fire insurance or have one that is expired or is inadequate, a fire could burn a deep hole in your pocket.

Replace damaged goods

People build businesses with great difficulty. Every small element such as a piece of furniture or machinery comes together to complete a business set up. Now imagine, something that someone built over a number of years burning up in a few minutes. For some, it may be impossible to bring the business back to the same position where it was before the fire. The fire insurance covers losses from the affected building as well as the damaged goods. The maintenance and repair charges of the damaged machines and equipment are covered by the insurer as well.

Share financial burden

Imagine a fire that engulfed the entire office? Not having a fire insurance policy can cost the business a lot in terms of recovering from all the losses and purchasing new goods as the whole office might need a do-over. This can also lead to a financial crisis because without insurance you will have no financial assistance. In some cases, re-starting the business can be tough and could lead to complete closure of the company.

Temporary accommodation

During a fire incident, the worst-case scenario is that the whole work area of your office gets affected. In such times, fire insurance is the best way out. It could provide an alternative accommodation for your company. In the meantime, this temporary office can help you serve your regular clients, while the actual place recovers from the damage.

Sense of security

Having fire insurance can also provide you with mental peace and security. Even if you suffer from losses due to a fire accident, you can always rely on the insurance providers as it will reimburse all of the damage.

Things to keep in mind

Now that your consideration for a fire insurance might have become stronger, here are some of the other aspects you should know and keep in mind:

Sum insured value: There are two broad methods to determine the sum insured value in a standard fire insurance policy:

1. Market Value (MV): In the case of MV, in the event of a loss, the depreciation amount is charged on the physical asset depending on its age. Under this method, the business owner (policy holder) is not paid the total amount that will be required to replace the asset post damage. Only the amount equal to the present value of the asset will be paid.

2. Reinstatement Value (RIV): In the case of RIV, the insurer will pay the cost of replacement of the asset and no depreciation charges are levied. The business owner will receive an amount equal to the cost required to replace the asset with a new, similar product. An important point to note here: the RIV is allowed for fixed assets only, not on assets like stocks.

Underinsurance or overinsurance

Both, under-insuring and over-insuring your property will turn out to be expensive for you. Under-insuring would mean that the insurer cannot cover damages exceeding a certain amount and over-insurance would mean that you would end up paying a high amount in premiums. To assess the risks and losses and expenses, businesses must take help from experts who would have the knowledge of how to calculate and decide the amount for the fire insurance.

Building codes

The companies that are built with old infrastructure cannot meet the current building codes. And the fundamental laws of infrastructure varies from place to place. If the building has never been refurbished or reconstructed, it is impossible for it to have the current codes. However in this case, if the building is completely damaged in the fire, the extra cost of the upgrade to be compliant with existing building codes is not included in the policy. For such kind of coverage, you will have to buy a specific policy, which comes under building ordinance policy.

You can’t control fire but what you can always do is mitigate damage control by ensuring the right amount of coverage in the insurance policy. It is important to assess and calculate the possible losses at the time of buying a policy to ensure that the amount of the policy is enough to recover from maximum losses.  

A few other important tips and cues:  

The address mentioned in the contract should be valid.

Make sure to include two or more buildings insurance in a single policy. It’s much cheaper than individual policies.

Renew your insurance contract annually to ensure you are covered.

Train your employees to handle a severe situation like this adequately.

Now that you know the importance of having fire insurance for your business, you might seek the advice of an expert insurance advisor or broker. PlanCover could be your fire insurance partner. Visit the website to know more.

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Business Interruption Insurance – vital to the survival of your business

Starting a business without a plan for security or insurance might be a reckless path to opt. A fire, a flood, an accident and other such disasters could interrupt your business and lead to losses due to the temporary inability to operate your business.

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The Office Package Insurance – Protect Your Inventories Today

Ever wondered what an office space means to you, the business owner? In India, especially, office spaces are treated as sacred as temples. For some business owners, it is almost like a second home. In most cases, the emotional and physical connection that business owners have with their office spaces is quite deep and special. And why not? People work hard to set up a business and nurture it.

From investing in a suitable office space to equipping it with the right kind of furniture and machinery, small and big things come together to complete the setup of an office. Running a business requires attention to its strategy and processes. The last thing a business owner would want is to spend time and resources on refurbishing office equipment or machinery which has broken down; or in salvaging some damage to the office building.

Doing any kind of business without planning and preparing for risks would be a rash decision. In this article, we share key insights about how Office Package Insurance can help your business in dire situations. Get tips and cues and learn whether you should purchase an office package policy and why.

What is Office Package Compact Policy?

It is a comprehensive insurance plan that provides coverage to office property and employees under a single policy. Provides coverage under various sections including fire and allied perils, burglary and theft, business interruption (loss of profit due to a fire and related peril), money insurance, electronic equipment, machinery breakdown, employee fidelity, personal accident and public liability covers.

Imagine you started a new small business. You started out in your garage, but within a few years, your team has grown to about 25 people. You moved to a bigger rented office space. The office had to be made functional with furniture, fixtures, pantry, electronic gadgets, computers and systems that are essential for the functioning of any small business. You were considering insurance plans that would be most suitable for your business and office needs.

A few weeks into moving into the new space you got busy with setting up the business activities and focusing on other serious matters. Insurance was at the back of your mind. You delayed it because work became a priority. As luck would have it, there is a burglary in the building in which your office is located. Your office got robbed as well. Not just that, a lot of the equipment in your office got vandalized and damaged in the process. You are shocked, distressed and worst of all, you do not have insurance to compensate for your losses.

In this situation, an office package policy would have been a safe coverage for the loss of cash, loss due to damage to machinery and loss due to the theft. The solution to doing business is not to be working with fear, but rather, to be prepared for any obstacles and risks. The Office Package Policy can cover numerous risks for a business.

What does Office Package Insurance cover?

Office Package Insurance covers a whole range of risks and dangers:

It covers the office building against risks such as natural calamities – earthquake, fire and the damage occurring due to it. A lot of the insurance companies also provide protection against risks arising due to terrorism with an additional premium

It covers risks that could arise due to theft, burglary, accidents and mechanical breakdown that affects assets such as furniture, fixtures, and electronic equipment, computers

The Office Package Insurance provides coverage against third party legal liabilities that might arise due to lawsuits filed against the insured

Additional rent during the time a business is moving into new premises

It provides coverage against loss of cash due to theft and burglary or in transit from the office premises to the bank

Coverage against losses due to a breakdown of equipment and electronic gadgets

This insurance also covers business interruption losses that arise due to accidents such as fire or other events that may halt the business activities

This insurance provides coverage for public liability and employer’s liability

The plan provides coverage for losses due to

Natural calamities such as flood, earthquake, etc.

Certain policies include coverage against risks related to terrorism

Electrical or mechanical breakdown

Theft and burglary-related losses

Damage due to accidents

Losses occurring due to the misconduct of employees

The exclusions under the Office Package Insurance

Losses due to pollution

Losses due to illegal activities by the insured

Losses due to war, atomic activities

Depreciation and normal wear and tear

Who should purchase an office package compact policy?

If you own a small or a large business that is operated out of an office and has a considerable size of workforce and assets, it would be worth considering the office package. Every business has basic equipment, office space and with those, come risks. Some risks such as fire, accidents, and natural calamities might be a high probability. But what about a terrorist attack or a fraudulent act by one of your own employees? Not many employers and business owners would imagine these incidents. Hence, it is essential for small, mid-sized and large businesses to have the right coverage.

When businesses are starting out and growing, it is obvious that the business owners would be mostly engrossed in the daily and strategic planning and execution of the business activities. They might not have the time to think about accidents and other such risks. Hence, it is important for small businesses to plan and be prepared for uncertainties.

Why should you consider an Office Package Policy?

Office Package Insurance offers a number of benefits.

It is a big umbrella of coverage

As seen above, the Office Package Policy provides coverage against a number of common and the most probable risks that a business might face. The risks covered under an Office Package are varied and can be customized to the particular business requirements.

It is convenient

This type of insurance, which is a package policy, provides coverage against a large number of risks, which makes it convenient for any small business, as one need not purchase different types of insurance policies.

It is flexible and can be customized

Different businesses could face different risks and hence their needs for insurance might differ too. For example, an online business that doesn’t engage in any cash transactions might not need cash insurance at all. Office Package Insurance can be customized to meet specific business needs.If you’re already considering purchasing an office package policy for your business, you’re making a smart and wise decision. PlanCover can help you implement this smart decision. To know more about Office Package Insurance plans from PlanCover, visit our website.

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Cyber Risk Insurance – A Must-Have Insurance For Any Small Business

Digitalization has taken over the world of business. With the shift from hardcopies to soft copies, has risen the number of incidents of Internet-based crimes – data breaches and phishing. It is a common misconception that cybersecurity is only a problem for big corporations. Large companies might possess more data, but small companies, too, face risks arising out of cyber crimes. For instance, large organizations are not the only ones susceptible to a virus attack or being hacked. Survey shows that 43% of small businesses have endured a data breach, out of which at least 50% have experienced it multiple times.

Some breaches could go undetected for an extended period of time, resulting in a hefty loss of revenue, or the company getting fined. A data breach could also damage the company’s reputation while also putting the clients and customers at risk. This is why cyber insurance is of utmost importance for small, mid-sized and large organizations and does not depend on the size of your business.

In 2017, the average cost that companies had to bear because of data breaches rose by nearly 8%, in a single year. The rough estimate of losses came down to Rs. 11.9 crore ($1.7 million).

Some of the biggest data breaches took place in 2018— the Aadhaar breach, which nearly exposed the data of over 1.1 billion people from across the country.

Kinds of Cyber Attacks All industries are under the constant threat of cyber attacks. Recent reports inform, ‘Information & Cyber Insecurity’ is ranked the top risk by the Education, Govt./ PSU, Financial Services, Infrastructure, Logistics & Transportation, Medical Services, Telecom and Others.” With all the data of companies saved online, on cloud, or even on a computer, the risk of cyber attacks is vastly enhanced. Hackers use varied ways to tap into all confidential data available on your machine: malware attacks, eavesdropping attacks, password attacks and denial of service attacks.

How do cyber attacks affect enterprises?

Business interruptions: Cyber attacks or loss of data can cause temporary interruptions to businesses. A complete system shut down due to a virus attack on the website of an e-commerce business could affect the sales and revenue of that business.

Security overhauls: Implementing and updating new security systems can cost heavily on the pocket of the company. In addition to the product cost, the training and the process of establishing new policies and procedures subtracts countless hours from the company’s clock.

Legal liabilities: Legal actions are a straightforward consequence of breach of data. Be it in the form of lawsuits that have been filed against a company by the affected third party or merely the company seeking legal advice on how to deal with the situation at hand.

Concessions to customers: To regain the trust of your customers is a hard job. Many businesses offer perks and services to their customers as a sign of goodwill, post a data breach. However, such concessions cannot be made without additional expenses on the company’s account.

Bankruptcies and shutdowns: Not all business can withstand the consequences of data breaches, or cyber attacks, and have to file for bankruptcy, or just shut down. Such incidents have the potential to deplete a company of all its resources, especially if the business is one on a small scale.

What is cyber insurance?

In order to help your organization mitigate financial losses as a result of data breaches, it becomes imperative to have cyber liability insurance. It covers legal liability, direct losses, and the costs that entail in the aftermath. Having cyber liability assurance cover allows companies to focus on building customer relations, and strengthening them, instead of worrying about the expenses that such an incident would bring to the pocket of the company.

Coverage provided by cyber insurance

Cyber liability insurance can cover two types of costs: first-party and third-party. The first-party coverage can cover expenses and costs when the business network is hacked and data is breached, whereas the third-party coverage can offer compensation when a customer or a third-party files a lawsuit for a data breach.

Cyber risks for small businesses and the need for cyber insurance

Supply-chain risk: a number of small businesses are a part of the supply chain or larger companies. Hackers usually attack the systems of small businesses to gather information about large businesses that have contracted small companies.

Internal employee threats: companies that lack cybersecurity awareness are at a high risk of being attacked by in-house or internal employees who steal data, passwords, launder money, among other instances.

Cloud-based business model: a number of SMEs now adopt cloud-based business models, which enhances efficiency and agility. Cloud-based models are at a higher risk of cyber attacks.

Lack of cyber laws: In India, there is a serious lack of cyber security laws for businesses. This leads to businesses taking their cyber security lightly and in the process increasing the risk to cyber threats.

Use of smartphones: A large number of new age businesses operate from mobile devices, from shared Wi-Fi networks, which are easy targets for cyber attacks.

Lack of budget and time: most SMEs operate on low budgets that do not allow for investments in high-security tools. Moreover, being owner-run or by small teams, small businesses are always short of time to invest in exploring safety measures.

As aforementioned, not many small scale business are able to endure a cyber attack or data breach. With the changing and growing SMEs landscape, the need for cyber insurance has increased. Grim consequences follow cyber-attacks, but one can regain their resources and whatever business they might have lost through cyber liability insurance. PlanCover helps its customers attain the best possible insurance options for their company. For more information on the same, visit our website.

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Everything you need to know about Group Health Insurance

Employees are an integral part of an organisation. With growing awareness, companies are focusing on what they can provide to their employees, to improve their overall lifestyle, so that they start providing better results. Corporate health insurance plays a significant role to hold on to that valuable talent. The employee feels protected against any medical incidents/injuries that might occur.

What is Group Health Insurance?

Group Health Insurance is a medical cover provided to a group of individuals in an organisation. According to IRDAI, a group can be an employer-employee or a non employer-employee group. Group health insurance is provided to all the members of the organisation after each member is provided with the certificate of insurance.

Features of Group Health Insurance

The group medical cover usually covers the spouse, dependent children and parents in the policy alongside the employees themselves.

The employees can avail the benefits of the policy and get the treatment done all over India and the claim will be processed.

The maximum age of entry for the policy is 65 years for adults and 18 years for dependent children. However, dependents can be added from day 1 (i.e. from the time of birth) which varies to 90 days (from birth) depending on the policy terms and conditions.

The employees can avail cashless hospitalisation in any of the empanelled hospitals which makes the payment process hassle-free. Claims are processed in a jiffy just with the E-Card.

Hospital expenses incurred as an inpatient due to an ailment and pre and post hospitalisation of 30 and 60 days respectively is covered.

Covers ailments like chemotherapy, cataract surgery which require hospitalisation for less than 24 hours as day care procedures.

Who should buy?

A group health insurance can be bought by any legally formed group of people. It can be a group formed for commercial purposes or for non-profit purposes. The groups can be profit-making organisations, educational institutions and NGOs.

What’s in it for you?

Waiver of Pre Existing Diseases – Any disease that existed before the inception of your health cover is waived. So if the patient is suffering from diabetes, he/she will not have to worry as it will be covered under the group health policy.

No Medical Examinations – The best part about group health insurance is that no medical checkups are required which is not the case in retail health policies. One can claim for any ailment right from the date of inception of the policy.

Maternity Benefit – Employees get maternity benefit for themselves or their spouse for normal delivery as well as C – Section without the waiting period of 9 months. This exclusive benefit is not provided in the individual health policies for such low premiums.

Dependent Addition – The employees can add their dependents in their group mediclaim policy including spouse, dependent children, dependent parents and in – laws based on the policy terms and conditions.

Waiver of the waiting periods – There is no waiting period for any pre existing disease. A new born baby is also covered from day 1 of birth.

Tax Benefits – Not only the employers, benefits are not taxable to the employees as well.

However, there are certain restrictions that employees need to keep in mind.

Employees cannot claim after their tenure from the organisation is complete.

You cannot make changes to the policy benefits after the issuance of the policy till the date of the renewal of the policy.

Companies decide the benefit in the medical cover at their own discretion which makes the policy inflexible and rigid for the employees.

Many companies might not offer coverage for parents.

A healthy workforce, surely we can help!

Group Health Insurance helps the company to mollify the risks of the employees which keep the employees motivated at work. A health insurance makes sure that the employees are covered from the financial instability that they may face at the time of health risks. It also attracts talented resources to the organisation.

We at PlanCover are here to provide you get the best group health insurance for your company from the various insurance companies. We will do all the work of finding the right cover for you with the best benefits market has to offer at minimum premium costs by comparing the best health plans.

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Insurance for individual consultants and why they need it

“I will sue you”is a common line people use these days. It may sound frightening. Individual contractors like doctors, accountants, lawyers, tutors, and real estate agents, among others, are at the risk of getting sued and held legally liable for damages occurred. A breach of contract, leakage of confidential information, an issue related to intellectual copyright or failure to provide the contracted services might lead third parties to sue professionals.

Better be prepared than sorry later. There are a number of insurance plans that are suitable and can be aligned to individual consultants. In this article, we will discuss the types of insurance for individual consultants and why should they consider buying these insurances.

Here are some reasons why an individual contractor needs insurance:

Protection for yourself and your business

Working independently or as a consultant brings numerous opportunities. But it has its pros and cons. It also exposes an individual to risks that one might not have to deal with when working as an employee at a company. Imagine a laptop being stolen or a client suing the consultant due to failure of delivering services on time. Legal liability exposures with independent contractors are quite high. All kinds of losses including damaged customer’s property, infringement of intellectual property, copyright breach, and bodily harm can lead to a lawsuit. That is why it is essential to have proper insurance, to have financial coverage at the time it is needed.

It may win you contracts

A number of clients might want to know if you have the basic insurances in place only to gain confidence in your ability and to be sure that you would be able to deliver. In such cases, having insurance policies in place might win you contracts. Moreover, independent contractor’s financial stability depends upon steady contracts. If you keep losing opportunities because of the fact that you don’t have insurance, then that can affect your income. To gain your client’s interest, you could have insurance coverage for damages that might happen in the foreseeable future.

It can benefit your employees

If individual consultants have employees or assistants, it makes it even more important to have insurance. Imagine your assistant meets with an accident while at work and suffers harm, then you as an employer could be liable to pay for the damages. But having insurance can cover your expenses.

Not all insurance plans might be suitable to individual contractors. So let’s look at the types of insurance that an independent contractor should buy.

The decision to start something on your own or work as an individual consultant is a big one. There is a lot at stake. Finances, reputation, any investments in equipment and risks related to each industry. There is a wide range of possibilities that could threaten the individual’s growth and lead to losses and unforeseen expenses. At times from legal claims. While independent contractors may not be able to cover themselves from all kinds of business risks, there are ways to cover losses and expenses. Primarily, the precaution starts from getting the right type of insurance.

Here are some insurances for individual consultants:

Professional Indemnity Insurance (PI Insurance)

To all the professional advisors, psychologists and consultants out there, the first thing to do is get covered with professional indemnity insurance. People who provide services can face a direct lawsuit if the clients suffer losses because of their services. At times, clients could claim that they suffered financial losses due to your services or products. Many professions such as medical services, therapy, among others, make PI insurance mandatory.

IT service providers, designers, writers, doctors, gym instructors, among others could suffer severely from losses or expenditures arising from legal claims. What are the expenses that PI Insurance can cover? Expenses arising from settlement and judgment charges, court, legal representation expenses and lawyers fees, as well.

Commercial General Liability Insurance (CGL Insurance)

At times the products or services that a contractor provides may cause bodily injury or property damage to a third party – customers, vendors, suppliers or non-employees. If a contractor has assistants or employees, they too could lead to causing bodily harm or property damage to third parties. In such situations, CGL insurance could provide coverage and lower the burden of expenses and losses for the consultant. CGL covers both the legal costs and settlement costs for the damages caused. In a nutshell, it protects your business from monetary losses occurring due to legal liabilities from third parties, such as customers or vendors.

Worker’s Compensation

If you have employees working for your business, you will need to have the worker’s compensation insurance. If an employee gets injured or a sudden demise takes place due to the company’s working situation the business itself will be liable for the losses. The worker’s compensation will help you cover their remuneration, medical expenses, and rehabilitation costs.

One of the critical factors to keep in mind is if the employee is under the clause of labor hire agreement with the business, then the losses will be borne by the labor agency. The company is not their direct employer. In that case, the labor agency should necessarily have insurance.

Keyman Insurance

In the Keyman Insurance, the proposer and the premium payer is the employer. The insurance coverage is for the employee – the keyman of the business – but the benefit goes to the employer. Synonymous to the name, this insurance is purchased by employers to safeguard a key employee, one who has significant contribution to the business and one who could hamper the business if injured or in absence. For those people who work independently and have assistants or one or two key employees, this insurance is a must.

Wrapping up…

In conclusion, the type of insurance you should own depends on the nature and kind of the industry you are dealing with. Apart from the above, certain contractors could need cyber insurance or property insurance, too. It is essential for you to connect with a professional and understand all the legal risks that you can get exposed to.

Visit PlanCover’s website to get a clear picture of the kind of insurance your business should get and decide for yourself. PlanCover provides you with a wide range of insurance plans which will protect you from every type of business risks.

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How to ensure better group health insurance as a small business?

We have discussed on some aspects of Group Health Insurance in our earlier article – the factors that should be considered while purchasing a group medical insurance, the benefits to employees and how it is known to enhance the productivity of the business.

In this blog, we discuss the ways in which a business or an employer can ensure the best possible group health insurance for the employees.

Group Health Insurance

Group health insurance, corporate mediclaim or group mediclaim, is an insurance plan that an organization purchased for a group of employees. Group health insurance can be purchased by a formal group, a business, an association or an organization. Under group health insurance, the insurer provides a single policy for the entire group of people. The insurer also provides a certificate to each member of the group.

The consolidated premium is calculated based on the headcount of people working in the organisation. Most premiums offered to companies are tax deductible for the employer, but organisations deduct a certain percentage of the employees’ wages for them to be able to enjoy the benefits of a group health insurance plan. In India the policy tends to differ under different terms and conditions- in some cases, the policy covers pre-existing diseases from the first day itself, in others, the cover benefits only come into effect after a certain period of time.

What are the benefits of Group Health Insurance for SMEs?

Here are some of the benefits that can be availed by both the employees – when they are a part of an organisation with group health insurance scheme – and the employers as well:

FOR EMPLOYEES

Helps save money: Group health insurance is exponentially cheaper than a single individual plan. This way, employees can save some money and acquire a cover all at the same time. Moreover, it will ensure coverage during a medical situation and the employees will not have to eat into their hard earned savings to pay the bills.

Employees can be free of burden: The burden of having to get insured is off the shoulders of an employee – they can undividedly focus on work. Health benefits provided by companies have shown a decrease in absenteeism due to sickness, and in worker’s compensation and disability pay, too.

No tests or check-ups: Purchasing health insurance is a lengthy process, which includes all kinds of tests which are incessantly taxing. By being a part of the group insurance scheme, employees do not have to undergo a series of tests or checkups, saving both time and effort.

Families are covered: In most cases of group health insurance, the families of the employees can also reap the benefits of the plan, as they can be included in the group policy.

Quality health care: When companies provide health insurance to their employees, they work with well-known insurers. Employees can receive efficient health care in this case, which they would have not been able to afford otherwise.

FOR EMPLOYERS

Here are some benefits that the employers can avail:

Tax benefits: It is not only the employees that benefit from group health insurance, but also the company. SMEs tend to receive a tax credit if they invest in group insurances. This is practised so that employers can provide their employees with some part of the premiums that are received by the company. As organisations with group insurances are qualified to get a tax credit, they are fully compensated for the money that is invested in the paying of insurance premiums.

Increased productivity: When your employees are not wasting their time worrying about the basic necessities for survival, like health insurance, they will have more bandwidth to focus on their work, and that, in turn, will increase productivity. This will minimize their absenteeism and will further help them return to work in an earlier fashion.

How to choose the right group health insurance provider?

There are several tips that one should follow before settling on the kind of group health insurance that would work best with your organisation. Here are some of them to keep in mind:

List all your employee needs: Health insurance is of different types. There are a number of factors that should be considered when purchasing a group health insurance – the number of employees in a company, their salary brackets, their age groups, and whether it is a single person insurance or a comprehensive double or triple insurance that covers the employee’s family too.

Choosing the cheapest, may not be the wisest: While picking group insurance, you will find multiple plans that seem too good to be true and that is probably the case. If those affordable coverages do not have any kind of tie-ups to hospitals and clinics that your employees choose to visit then it’s a big loss for you as the group insurance will be deemed useless. Explore all the coverage options, weigh them in, and measure them in accordance with the needs of your employees.

Do not overlook Coverage Limits: With inflation being a constant phenomenon, it is only smart to understand that the cost of healthcare is on a continual rise. All health insurance plans have a coverage limit that you should be aware of. Pick a group health insurance which has sufficiently high limits- enough for you to not spend from your pocket. There are two kinds of limits that organisations should look into before purchasing group health insurance – maximum limit per claim, and maximum limit per lifetime.

Do not miss the fine print: In addition to the financial limits on insurance claims, there are a number of types of limits that might be mentioned in the fine print of the terms and conditions. Some insurances pose strict limits on surgeries of certain types. For example, say a root canal is under the internal limits of your policy with a cap of 50k rupees. Although as per your claim, your limit is 5 lakh rupees, the internal policy may be overriding your per claim limit. This can result in expenditure from the pocket of your employee, that is not covered by the group health insurance.

Tailor-made plans are possible for companies:In the case of group health insurance, insurers provide the option of tailor-made policies, which is not possible for individual health insurance. Here are some of the factors that group health policies consider:

It allows insurance policies that offer Corporate Buffer, where the employer can add an additional amount

It provides coverage for ailments that exist at the time of purchasing the policy

Businesses can purchase policies that do not have a waiting period of 1 or 2 years

Policies usually provide Baby Cover after 90 days, but in group health insurance, it is possible to have Baby Cover from day 1.

It provides policies that offer varying maternity compensation – based on the kind of delivery – normal or C-section

Businesses can purchase policies that do not have a waiting period of 30 days

It offers policies that allow co-payments, where the employee bears the amount as a percentage of the claim, thus reduce premiums

It provides maternity coverage with or without a 9-month waiting period

Worldwide coverage: If your line of work requires your employees to travel often, then it will be a safe bet to opt for a group health insurance that works globally. Emergencies can arise at any given point in time, and one should ensure they have themselves covered as a cushion for an unexpected medical trauma that could arise at any given point of time.

Purchasing a group health insurance can be a game changer for you as an organization and for your employees. There are a number of benefits that your organization and your employees can get with group insurance. A secure organisation equals happy employees. Are you ready to learn more about the benefits, and the different insurances that you can look into, visit our website.

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Insurance for IT Companies and Consultants

It is but obvious that business insurances will be industry specific. Each business entity, depending on – sector, budget, size, employee strength, the kind of products and services it offers, among other factors, will need specific business insurances tailored to its needs. If you are a business owner, you need to be aware of your exact insurance requirements, specific to your company and industry. This could be difficult to assess in the beginning. You certainly need to be aware of which pitfalls to avoid and not end up wasting precious money on insurances that won’t serve any purpose to you.

A good way to avoid perilous gaps in your insurance policy is to plan. The one size fits all strategy seems fallacious when it comes to choosing insurance for your enterprise.

In this blog, we look at insurance needs specifically for the IT and ITeS sector – companies and consultants. Why IT? It’s one of the fastest growing sectors in the country, which means it is also one that is facing increasing risks. The recent India Risk Survey 2018 reveals, “Information and Cyber Insecurity remains at the top of all the risks”. A detailed report by EY seconds this with numerous instances from India related to data theft, intellectual property infringement fraud, and misappropriation of funds, among others. It’s happening to a lot of companies, big and small, and it can happen to you as well!

IT and ITeS sector

Services and businesses in India are moving towards digitization at a rapid pace. While it is a step towards advancement, it also brings increased risks to data. The IT and ITeS sector includes companies that function in the domain of software development, web application, ERP implementation, product and service delivery, IT consultants and related services. As the nature of business differs, the risks that accompany it change. The risks could be:

Data theft, phishing, hacking

Compliance and regulatory incidents

Cyber infrastructure attacks

Impersonations

Insurers solutions to IT and ITeS insurance needs

Insurers understand that with the incorporation of IT, businesses and operations have become more complex. They are now more layered unlike what they used to be a few decades ago. The insurance industry has responded to these needs:

Insurers know that the evolving range of risks requires specific insurance.

A predetermined product based on assumptions does not suffice the needs of different IT businesses.

Insurance propositions need to be tailored according to actual needs such as the complexity of a business, third-party supply chains, and the extent of virtual layers, among other factors.

Every component of a business needs commercial insurance.

Businesses that are growing might need thorough realignment of insurance portfolios at intervals in order to safeguard the business.

Moreover, with high levels of competition in the insurance industry, insurers know that they need to be on top of the game when it comes to customer service – from risk advisory, insurance solution, servicing claims to portfolio management for customers.

Key insurance for IT sector

Let’s look at some specific examples of IT-related incidents and the types of insurance that could come to the rescue in these situations.

1) Professional Indemnity Insurance (Errors and Omissions Insurance)

Example 1: There was a case of data theft at a Gurgaon-based BPO. One of the employees of the company is believed to have sold confidential data to some customers of a British bank. The bank came to know about this and sued the BPO for data breach.

In the above case, Professional Indemnity Insurance (also known as Errors & Omissions Insurance) was useful to the BPO. Professional Indemnity Insurance can be useful in cases that involve intellectual property rights, instances of project delays, revenue loss to customers due to the negligence of a service providing company, product liability, loss of data, and breach of contract or confidentiality.

It seldom happens that deadlines are not followed and certain projects get delayed. A delay could potentially make a client lose their revenue and additionally it might be a breach of contract. In order to avoid a heavy loss to the company, IT companies prefer to purchase the Errors and Omissions Insurance.

What does it cover?

It covers all the legal aspects of the situation at hand. The Professional Indemnity insurance takes care of everything from legal fees, to the judgement and settlement costs.

2) Commercial General Liability Insurance

Example 2: An IT company in Bangalore, located in a plush IT park had invited a group of college students for an interactive learning experience as part of their CSR activity. At the same time, the office was undergoing renovation work, too. A few of the students got injured when a scaffolding inside the office fell on the students. The parents of the students collectively sued the IT company for the bodily injury caused to their children. So you see, IT companies and for that matter, companies in all kinds of industries, can face several kinds of risks.

In the above scenario, the Commercial General Liability (CGL) coverage came into play. The CGL policy would provide coverage towards legal fees, judgement and settlement costs that could include expenses such as the repair of property damage (to a third party), medical and hospital expenses of an injured person, and claims against psychological damages faced by the third party, among others.

What does it cover?

It covers all the legal aspects of the situation at hand. This will help your business to avoid all legal expenses that circumstances can entail.

3) Cyber Liability Insurance

Example 3: A Hyderabad-based software services company’s employee managed to steal the company’s accounting system password and embezzled US$ 2 million from the account of one of the company’s clients. As a result, the company had to shut down the entire online accounting system temporarily, which resulted in a loss of revenue. Apart from that, the company’s client filed a lawsuit in order to recover the amount lost. In this situation, the company’s Cyber Liability Insurance helped. The first-party coverage compensated for the loss of revenue and the third-party coverage compensated for the legal settlement costs.

The biggest risk in an IT firm is that of data. If the data is leaked, and the privacy of your clients or even worse, their customers, are compromised, the repercussions can be severe for the client – loss of customer trust, negative press coverage, loss of possible business for starters. In this scenario, the IT firm will definitely be sued by the client, seeking compensation for the damages they have suffered.

In the IT sector, there is always a privacy risk that could potentially cause business losses due to a cyber attack. Such scenarios can only be made easier on the company with the help of the right insurance.

What does it cover?

The coverage of this insurance includes data recovery expenses, legal fees, settlement costs, and the loss the company suffers due to unforeseen circumstances.

4) Group Health Insurance

Example 4: Few employees of a Pune-based BPO fell ill because of eating poisonous food at the cafeteria of the company. The employees were rushed to the hospital in time and given treatment. At such times and at any time when the employees of a company incur hospitalisation or media expenses, the health insurance provided by the company for its employees can be utilized.

Group Health Insurance is provided to the employees of a company by the company. There are different kinds of policies under health insurance, of which the most usual are: health insurance that covers the cost of treatment for illness and injury; accident insurance that covers death, disability and loss of income arising out of an accident, and term life insurance that pays a lump sum amount in case of death due to any reason.

Investing in the right policies will not only help your company grow, but it also enables you to manage the risks and hurdles that are often faced by IT sectors, with ease. Mistakes are bound to be made if there are employees involved. The best one can do is aim to create a stable work environment by shielding your company using the right insurance policies, tailored to fit. The financial and mental stress that all catastrophes bring cannot have a number put on them. They can potentially cripple your entire venture if you are left alone to deal with the hardships. The aftermath of incidents is reduced exponentially by investing in the right insurance that fulfils all that your business requires. Do not delay the process of ensuring your business, because disaster can knock on your door any time.

IT-related risks can be faced by all kinds of businesses that rely on digital processes and technology. Hence, insuring your business against these risks is essential. To further learn about the different kinds of insurance that can safeguard different components of businesses in the IT sector, visit PlanCover’s website. We have developed a number of key solutions to IT sector-specific risks and challenges of insurance.

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A Guide on How to Buy Small Business Insurance

Small & Medium Enterprises (SMEs) play an important role in the development of the Indian economy. With new developments and advancements in technology, digitization, expansion of markets, and a growing workforce, the SMEs environment is seeing rapid changes. But change, brings with it, challenges and risks.

Establishing any business requires massive financial investment – money from your own savings, hefty bank loans or funding it with investors’ money. Whichever be the case, entrepreneurs put their entire business at risk, financial and otherwise, if they fail to have a contingency plan to meet unexpected risks. For a business, risks can be in the form of an accidental fire, a natural calamity, theft or burglary, fraudulent acts by own employees and damage to assets. Any of these could mean a potential collapse of a business.

So how do you ensure that your business is saved when things unexpectedly go horribly wrong? By purchasing the right business Insurance for your company.

For SMEs, insurance is a key element that could impact their sustenance and success. As emphasized in a report , “the attitudes of the owners and their knowledge towards risks play an essential role in how systematically risks are handled.”

In this article, we take a closer look at some of the risks that SMEs are vulnerable to and share the best practices for small businesses to buy insurance.

Insurance challenges of small businesses

SMEs are fraught with challenges: Small and Mid-sized businesses are filled with opportunities for growth. But, growth and risks are like two sides of the same coin. And that is why a small business needs to insure its different aspects. When it comes to business insurance, a small business could be facing the following challenges:

Lack of in-house human resources with expertise in insurance

Shortage of funds to spend on insurance

Lack of time to explore the right kind of insurance

New entrepreneurs could lack the industry-specific experience to foresee risks

Nothing is certain or predictable in life. The same applies to business. And when it comes to business, there always exists the threat of liabilities. Both, the business as an entity and the owner of the business are liable. This brings us to liability insurance, a must for small and mid-sized enterprises.

What is liability for a small business?

An employee got injured while working, the next door office got damaged because of renovation work in your office, a competitor business filed a legal lawsuit with charges of copyright infringement, or a customer claiming loss of sales because of a faulty product that your company sold – these are just a few instances of how you or your business could be held liable.

Liability insurance for small business

Liability insurance can provide financial coverage towards expenses due to legal claims or losses arising from a third party. There are different types of liability insurance that protect different aspects of a business.

Commercial General Liability Insurance

Professional Indemnity Insurance

Directors & Officers Liability Insurance

Cyber Risk Insurance

Workers Compensation Insurance

Insuring tangible assets

Apart from liability insurance, small businesses must also protect their assets and properties. What could be the assets of a small business? Its employees, office premises (whether rented or owned), office equipment and machinery, electronic equipment, data, cash, and other such valuables. Some of the most common insurance that small businesses must consider are:

Fire insurance

Property insurance

Warehouse/factory insurance

Electronic equipment insurance

Group health insurance

Group Health insurance

Let’s look at the need for and importance of group health insurance for small and mid-sized enterprises. According to a recent survey by FICCI-KPMG, health cover is provided to only 10% of the employees, and only 0.1% of other property risks are covered. But it is one of the most essential for any small or midsize enterprise, considering the shortage of human capital and challenges of acquiring talent.

Here’s why SMEs should buy Group Health Insurance

To protect employees’ savings: As an organisation, you must offer financial wellbeing to your employees and help them protect their money. Having a company provided health insurance would save their personal finances when they need healthcare.  

Ensure quality healthcare to employees: Not all employees might have access to quality healthcare. A health insurance cover would ensure that they can get treated in the best of hospitals that are equipped with the latest technology.

Retain talented employees: Perks and benefits affect employees decisions of continuing in organizations. Offering mediclaim benefits would mean a huge benefit for employees.

Stay competitive as recruiters: Health insurance and mediclaim benefits add to the competitiveness of companies that are looking to hire talent. Employees often look for benefits provided by companies before making job decisions.

Industry-specific risks

The SMEs sector is vast – from agriculture and manufacturing to IT and media. To generalize the insurance needs for the entire sector would be a big risk. Each business and industry has its own different risks and so are the needs for its insurance. Recognizing the need for business-specific insurance is imperative.

Best practices for business insurance for small companies

Insure your business assets – office, machinery, electronic equipment, inventory, and vehicles, among others.

Incidents and events could result in a temporary shutdown of your business. This could result in the loss of revenue and added expenses if you choose to work from another place. That is when Business Interruption Insurance can help.

Burglary cover and money insurance are safe to have. Electronic equipment policies can cover loss of data.

Consider liabilities that your business might face due to different reasons. Third party liability insurance plans provide coverage against a number of legal liabilities.

If you are in the services or products business, Professional Indemnity insurance would be helpful.

Get insurance for your employees as well. A group health insurance policy for your employees will provide them with a number of benefits.

Depending upon the factor that every move you make in business holds risk, try to understand the possibility of all kinds of risks that your business could face.

Consulting a professional or a lawyer would ensure that you make the right choices.

Professional insurance companies can help you assess risks, plan the insurance amount, define the duration, decide the premium amounts depending on your budget and provide guidance in making the right choices.

Key insurance decisions

When planning the insurance portfolio of your small business, the decision essentially comes down to a few important factors:

Choosing the right insurer from the many options in the insurance market

Deciding how much the policy will cost and the premium amount

How much coverage is it going to provid

Wrapping Up

Starting a business is a dream that many entrepreneurs look to fulfil. Establishing and running a successful business is a matter of pride, commitment and passion for many. But many fail to realize that the business they build with immense hard work can come crashing down with just one small error. Every aspect of small businesses need protection. The above essentials can guide you in making the right decisions for your business insurance. PlanCover could help you with the right professional advice and guidance in your choices. Visit the PlanCover website today.

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How Do I Claim For my Group Health Insurance

Now that the employees are insured and have a medical insurance cover, the question arises, how does one claim and what is the whole process? We will help to answer all those questions so that the claim is processed effortlessly.

How to claim?

You can make a health insurance claim in two ways –

Cashless Claims

Reimbursement Claims

Cashless Claim – This is a facility extended by the insurance company and a part of your policy terms where the policy holder can get admitted and undergo necessary treatment without paying the hospital directly for the medical expenses. The eligible medical expenditure which is incurred is settled by the insurance company directly with the hospital. You can avail cashless hospitalization only in the hospitals that are part of your TPA ( Third Party Administrator ) or Insurers network.

PROCESS OF A CASHLESS CLAIM

Please find below the procedure of cashless claim process

To avail the cashless facility, you can walk-in to any of the nearest network hospital.

Carry your mediclaim cards along with any Government of India photo Identity proof.  

Please inform at the hospital reception ( or TPA / Insurer Helpdesk) that you are covered under Group Medical Insurance policy.

Ask for pre-authorization form and get it filled by your treating doctor along with medical reports in support of diagnosed. Many Hospitals get this process done by themselves but you can check for particulars at the hospital you are going to.

Mail the scanned copy of pre-authorization and medical reports to your respective TPA. This too is often handled by the hospital itself.

Insurer / TPA will then evaluate the details mentioned in the form and process your claim within 4 hours – 6 hours ( this is typically a conservative estimate of time and can often happen much sooner) or intimate you further. This intimation could potentially be a request for more information or a denial of cashless. No denial can happen unless the treatment is not covered specifically under the policy terms. We will be happy to help in case that was to happen to re-validate the opinion of the insurance company and to challenge it on your behalf

The cashless may be rejected if Insurer / TPA is of the view that the ailment/ hospitalization are not covered under this policy.

At the time of discharge if the claim amount is more that your sanctioned amount, the Insurer / TPA will mention it in the approval note and you may have to bear that yourself. The common head’s under which this partial approval may happen are –

Few hospitals may ask for initial deposit at the time of admission. This is a subjective demand and varies from hospital to hospital. Any amount that you have paid, after adjustment for the details mentioned in the previous point above, will be refunded to you.

At the time of discharge – The patient and family are obviously eager to get home at this point in time. We would like you to calibrate your expectations on this. While the treating doctor may advise discharge the previous day or the same day, the sequence of processes that a hospital needs to follow are many. THis process itself at the hospitals end, often can take a few hours. Finally once the hospital generates the final bill and discharge summary, they will send it to the Insurance company / TPA. This is then put into a detailed scrutiny by them and a doctor will also evaluate all the documents. Once they have validated all details and mapped it against the policy terms, they will approve the claim and also the amount that they will pay. THis will then result in the Final Authorization being sent to the hospital.

On receipt of the Final Approval / Authorization, the hospital will let you know via the billing department if you need to pay any balance, assuming the approval is done. You can pay that balance or challenge it ( in which case seek us out and we will understand your point of view and represent it to the Insurer / TPA)

Your sum insured is exhausted.

Non Medical Items that are not covered under the scope of any health insurance cover in India.

There is a provision of cost bearing on your part, as a policy feature under your policy, often called co-payment.

There is a capping for the particular treatment in your policy.

Reimbursement Claim – This facility is opted by the claimant when he goes to a hospital as per his choice given that it is a non network hospital. Cashless process cannot be availed here. The claimant has to pay for all the medical expenses and other costs  incurred during the hospitalisation. After discharge, the claimant has to provide all the original documents to the insurance provider. The provider will scrutinise all the document as per the policy terms and conditions and make the payment to the employees. In case the treatment is not covered, the claim is rejected and a reason is provided.

DOCUMENTS REQUIRED FOR REIMBURSEMENT –

Following original documents are mandatory to process a claim under reimbursement.

Please note the hospital should a minimum of 15 beds. (Read Here for more details on Bed Requirement for it to be qualified to be eligible for claim payment under health insurance)

Copy of Hospital Registration Certificate with Registration number and number of beds certificate (This may not be required in case of larger hospital which are well known and in larger towns / cities )

Claim Form duly signed. This is absolutely mandatory

Copy of the Claim Intimation, if any ( If you are filing the main hospitalisation expenses for reimbursement, then you would have done the intimation of the claim in advance, as per your policy terms. Do attach a copy of that)

Hospital Main Bill with proper breakup of the expenses. Often there is a summary bill and then there is a bill which mentions all line item wise expenses. The insurer will need the detailed latter bill

Hospital Bill Payment Receipt for which the policyholder / claimant made the payment to the hospital. Do note that this receipt will need to be numbered.

Original Hospital Discharge Summary (which should clearly mention –

Others medical document that may be provided

Doctor’s Prescriptions. Often in non-emergency cases, the patient is first shown to the doctor n OPD basis, In such cases all doctors prescriptions will be needed

Copy of photo identity card of patient and employee

Pharmacy bills.

MLC Report & Police FIR, Alcoholic declaration in case of accidental cases particularly Road Traffic Accident (RTA)

Also in RTA Cases, detailed circumstances of the trauma with date, place and time. This is mandatory for reimbursement claim in case of an accident case.

All Investigation Films and Reports – ECG / CT / MR / USG / HPE or any other investigation reports. Obviously there will be no films in cases of blood investigations, urine / stool investigations or biopsy

Original cancelled cheque, with printed name, for the transfer of payment to your bank account. If you providing cancel cheque without printed name please submit the copy of passbook with bank attestation. Bank E-statement (In case your name as an employee is NOT printed on the cancelled Cheque)

Patient name

Date of Admission

Date of Discharge

Age of the Patient

Final Diagnosis

Case Summary / History (On Examination), Course in Hospital, Line of Treatment, Advice at Discharge with signatures and stamp of treating doctor. This will be on the hospitals letter head

Points to keep in mind while filling the claim form for reimbursement process  –

Kindly mention your Employee ID, Company Name and Contact details on top of the claim form (You can write this at the right top portion).

Please note that the following fields are mandatory in a claim form –

Policy Number (in case of Corporate policies, even if you don’t have the policy number, that’s fine, you can omit it.

Cashless Identity Card number ( would be mentioned on your hard copy or E Card in case you have that).

Name of the Insured ( Primary Member) with addresses and contact details.

Name of the Corporate & Employee code.

Name of the Patient, date of birth and relationship with the employee.

Tick on the type of claim, write, and date of admission and discharge, name, address and contact details of the hospital.

Provide the details of illness / injury / disease.

Provide the details of amount that is being claimed with breakup of bill numbers.

All documents in original.

Signature of the claimant along with place and date (this is mandatory).

FAQs –

Is there any clause for intimation to process my claim?

You should intimate the TPA within 24 hours of hospitalization in case of unplanned / emergency cases and before 48 hours of hospitalization in case of planned treatments. This will be applicable for both cashless as well as reimbursement cases.

     2. How should I plan my treatment for cashless hospitalisation?

You can plan for cashless hospitalisation before 4 days before the date of treatment. The insured must notify the insurance provider via mail for planned hospitalisation. The insured is required to provide his/her government approved identity card at the TPA desk in the hospital. A pre authorisation form is required to be filled by the insured. After this step is done, the TPA will get the approval done. On the day of admission in the hospital, the insured is required to show his/her identity card with the approval letter. The payment will be settled by the insured provider and the hospital directly.

     3. Will I be able to claim if I submit my claim documents  after the policy expiry date?

Yes, the claimant can claim in cases when the admission date for hospitalisation is prior to the policy expiry date. After the claim documents will be received, the claim will be processed as per the policy terms and conditions.

Note that the employee has to make sure that the intimation is provided by the claimant to the insurance provider within 24 hours of hospitalisation.

The claim documents will have to be submitted within 30 days from the date of discharge to avoid the delay of submission of claim documents.  

 4. Can I lodge more than one claim for the same diseases?

Yes, your mediclaim policy covers 30 days pre-hospitalization expense reimbursement and 60 days post-hospitalization expenses. You may lodge your pre-hospitalization claim along with hospitalization claim. The post-hospitalization claim may be lodged after 60 days of the hospitalization. However, please quote your Claim Number for easy referral and sorting.

  5. In case I require my original medical papers back for future reference, what should I do?

Please carry a complete set of photocopied documents when you lodge your claim. The relevant original documents will be returned to you after verification. The TPA will however stamp the original documents. Please note that normally, the original doctor prescription, medicine bills and discharge summary along with the hospital bills will be retained by TPA. Only X-ray films, ECG, other medical records will be returned to you as a special case after verification / approval of TPA’s medical team.

6. During the course of my treatment, can I change the hospitals?

Yes, it is possible to shift to another hospital for reasons of requirement of better medical procedure. However, this will be evaluated on the merits of the case and as per policy terms and conditions.

7. Can I get outpatient treatment using my Ecard?

No. The TPA Card is issued against the mediclaim policy which only covers hospitalization expenses. It cannot be used for outpatient treatments as OPD benefits are subject to the policy terms and conditions of the policy copy.

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Product Liability Insurance for small business – a guide

A few years back, a prominent electronics brand’s tablets were causing explosions and fires due to overheating. In the process, these products were leaving a number of customers injured. Matters came to such a head that these products were banned on-board by most airline carriers around the world. The company had put out a recall notice and warning to customers to stop using that particular product immediately.

Companies that offer products are vulnerable to legal risks arising out of claims from third parties. They also have financial risks that arise out of losses caused to third parties due to such products. In such cases, the Product Liability Insurance can save the day. As the name suggests, product liability insurance provides coverage for losses and expenses arising due to inferior-quality products that a company offers which can cause bodily injury or property damage to the consumer.

History has been replete with incidents where famous brands have been forced to recall their products because of had the potential to significantly endanger the lives of its consumers. In all such cases, it is Product Liability Insurance and Product Recall Insurance that have come to the rescue of these brands who were facing liabilities to the tune of billions of dollars.

Immunity to massive liabilities arising from defective products might be difficult for small businesses. If a small business is sued for a defective product that causes injury to customers, the business could sink. Thus, it is essential to stay protected. Let’s look at this insurance in detail and understand why even small businesses that offer products must have this insurance.

WHAT IS PRODUCT LIABILITY INSURANCE

A company has several liabilities to third parties such as the liability of bodily injury, property damage, financial losses caused, and much more. Product liabilities are those that occur due to the products that a company has offered. A faulty product might cause death, disability, shock or mental injury to a third party. It could even cause destruction to the property of a third party, which could leave the property unfit for use. This insurance helps a business by compensating financial losses and expenses incurred by the third party in cases when a defect or a fault in a product causes bodily injury or property damage to a third party.

Let’s understand what is a defective product

The cases of defective products can be broad but the claims typically fall into three categories based on the reasons:

Design defect: When there are flaws in the basic design of a product

Manufacturing defect: Defects that have occurred during the manufacturing process

Marketing defect: When the product is not accompanied by adequate instructions and warnings about the proper use of the product.

WHO SHOULD HAVE PRODUCT LIABILITY INSURANCE?

Those companies that offer products to customers must consider product liability insurance. The form of the product could be anything – food & beverage (F&B), electronic goods, software, raw material and more. Product liability insurance can be helpful in the case of the products being supplied in the business-to-business (B2B) and business-to-consumer (B2C) industries.

Let’s understand the need for Product Liability Insurance for F&B companies in the SMEs sector.

The F&B industry is fraught with risks – non compliance of safety standards, expiry of consumption date, packaging, taste, use of food grade ingredients and a lot of other aspects could go wrong even with the smallest of negligence or error. Moreover, the industry is huge including beverage, dairy, bakery, confectionery, read-to-eat packaged food, raw food, food preservatives, taste enhancers, colour, and more. Even a small fault in the chain could lead to the risk of lawsuits and legal claims.

Companies that manufacture, sell, distribute or pack food products can be held liable for bodily injury (illness, death, disability and more) or property damage caused by the consumption of the food. A particular company might not be at any fault, but it can still be held liable under the law. In the event that the court establishes a link of the damaged food product to the company, it will have to pay the damages awarded by the court. These damages could be so high that without the support of insurance, a company might sink.

According to The Food Safety and Standards Act, 2006, the liability for food products rests with all the stakeholders in the food product supply chain – the manufacturers, packers, wholesalers, distributors, and retailers. If the food is not in compliance with this Act, or the rules or regulations, the manufacturer shall immediately initiate procedures to withdraw the food from the market and consumers indicating reasons for its withdrawal and inform the competent authorities. Hence, a Product Liability Insurance and a comprehensive Product Recall Insurance will provide a holistic protection for F&B companies.

WHAT DOES THE PRODUCT LIABILITY INSURANCE COVER?

The product liability insurance provides coverage towards legal claims made for bodily injury and property damage arising from a product manufactured by the insured. The amount of coverage that the insurance provides is based on the coverage decided by the insured at the time of purchasing the policy. Hence it is important for the company purchasing this insurance to assess the right amount for the insurance.

For example, a manufacturer of heavy machinery that produces textile would have higher financial risks compared to the manufacturer of ready-made clothes. The amount of coverage to purchase would depend on the risk assessment associated with a product. Product Liability Insurance provides financial compensation for the following:

Legal liability expenses, which include costs, fees and defense costs of the person making the claim.

Costs towards judgments and settlements.

WHAT ARE THE EXCLUSIONS

It is important to note the difference between product liability and product recall insurance. And similarly, the general commercial liability insurance and this insurance. There are a number of exclusions that should be noted at the time of purchasing the policy. Here are some of the exclusions.

Expenses and losses from a product recall, unless a separate extension for product recall is purchased.

Deliberate defects in products

Deliberate non-compliance with standards

Product guarantee

Copyright, patents or trademarks infringement

Radioactive toxic explosives and other hazardous materials

War and terrorism

Repair, modification or replacement for a product

Liabilities for fines, penalties or penal damages.

WHY SHOULD SMALL COMPANIES HAVE PRODUCT LIABILITY INSURANCE?

Small businesses and startups have a lot going on, especially in the initial days when the business has just started. In all the important aspects to attend to such as finance, product launch, revenue generation, marketing processes and more, even the thought of a product liability insurance might not make it to the to-do list. But this could cost a company that manufactures products immensely.

It helps companies mitigate losses and expenses arising out of products

It can help companies expand the business and gain new partnerships

It can help companies stay afloat during times of legal claims

It can help companies from complete shut down due to huge financial expenses

It can help companies build credibility and reputation

HOW TO PURCHASE A PRODUCT LIABILITY INSURANCE?

1. Ask yourself these questions about the products that you manufacture and supply:

Can the product cause physical injury?

Can the product cause property damage?

Can the product cause losses or expenses to a third party?

Your answers will help you assess the risks associated with your products.

2. Consult an experienced insurance broker or insurance broking company. A competent insurance broking company will be able to help you in assessing your product related risks, your business and industry-specific risks as well. The insurance company can help you with a selection of insurers and quotations for product liability insurance for you to make the right choice based on your budget and preferences.

If your company manufactures or supplies any product, the decision to purchase a product liability insurance should be a no brainer. You could explore this insurance in detail with the advice and guidance of PlanCover. The insurance broking company’s expertise in the SMEs insurance market is an added advantage for small and mid-sized enterprises.