Types of Corporate Insurance

Just like any individual needs to safeguard his interests against any unforeseen circumstances, a company is also an entity seeking both financial and social security for its survival. All over the world, insurance is considered to be an ideal investment option for both people and companies who want to prepare themselves for any untoward circumstances.

Corporate insurance, as the name suggests, is an umbrella term that includes all types of insurance policies taken by various organizations. It is provided by most of the insurance companies. Some of the common policies taken are mentioned here:

Corporate Health Insurance

It aims at providing health coverage to all the employees of an organization. A part of the premium amount is paid by the employer and a part is deducted from the salary of the employee. Contribution to health insurance is a fixed component in the salary structure that is made known to the potential employee at the time of the interview process. The insurance is covered under the social security schemes of the organization.

Fire Insurance

The threat of fire looms every time in an organization as it has huge and complex machines and electrical fittings. Any spark or burst can cause fire that can spread and cause mammoth destruction. Therefore, it is a popular insurance coverage taken and renewed from time-to-time. In the event of loss due to fire, the insurance companies compensate its insured company for the calculated loss thereby saving the latter from a financial setback.

Travel Insurance

It is usually taken by companies where employees have to travel often as a part of their business. For instance, market research firms, media companies, and travel operators. The insurance coverage takes care of the loss arising on account of baggage loss, loss of passport, an employee’s medical expenses, and many more. It is a contract of indemnity where the insured company will only be indemnified for the actual loss.

Marine Insurance

There is a great possibility of goods being lost or damaged or the entire ship sinks, etc. during transit of goods from the manufacturers to the buying parties. Such an insurance policy provides innumerable benefits that cover all the financial risks associated with the transfer of goods via the water route. However, the claim amount is received by the insured only after a number of inspections and checks are made by the insurance company to ensure that the loss is genuine and not deliberate.

Source by Jennie Kakkad

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