Frequently Asked Questions

It is a system by which the losses suffered by a few are spread over many, exposed to similar risks. Insurance is a protection against financial loss arising on the happening of an unexpected event.

Insurance is a hedge against the occurrence of unforeseen incidents. Insurance products help you in not only mitigating risks but also helps you by providing a financial cushion against adverse financial burdens suffered.

General Insurance provides you the much-needed protection against such unforeseen events. Unlike Life Insurance, General Insurance is not meant to offer returns but is a protection against contingencies. Under certain Acts of Parliament, some types of Insurance like Motor Insurance and Public Liability Insurance have been made compulsory.

It is essential to have an adequate amount of coverage for each insurance policy. For any asset or property insurance, the asset's value based on market value or reinstatement value should be considered before deciding the Sum Insured. If the Sum Insured is not adequate, the insured must bear the percentage representing the uncovered portion of the asset.

Almost everything that has a financial value in your life and is likely to get lost, stolen or damaged, can be covered through Insurance. Property (both movable and immovable), vehicle, cash, household goods, health, dishonesty, and your liability towards others can be covered.

Accidents and mishaps can occur anytime and anywhere. It is essential to identify the risks faced and insure oneself against these at the earliest.

Premium is the fixed amount of Sum paid over the insured's period to take the insurance policy and complete the insurance contract.

Insurance is a contract between the insured and the insurer. The proposal form is the basis of the contract, and it contains all the required information for the preparation of the policy, which is a contract document.

It is the consideration of material fact to assess the risk and decide whether to accept the risk for an insurance contract and, if so, at what premium rate.

The amount, which the insured has to bear in all cases and this amount is first deducted from the total assessed payable claims amount before determining the insurance company's liability.

It is an arrangement by which insurance companies spread their risk with other underwriters or reinsurance companies called Reinsurance.

More frequently asked questions about Business Owner’s insurance

Commercial property only covers your goods, gear, inventory and structures that you own. A business owner’s policy covers all of these items and general liability risks. Damage to other people’s property, injuries to customers or vendors and legal fees can all be included with the liability coverage in a BOP. If you know your business needs both general liability and commercial property coverage, you can typically save money by combining them in a BOP policy.

Business owner’s policies are tailored for you and include relevant coverage for your industry. For example, if you own a restaurant, we include what’s known as a “spoilage endorsement.” If a power outage causes your walk-in refrigerator to fail and all your inventory is ruined, your BOP would help cover the loss. You can also combine a BOP with other insurance policies. You can add additional types of coverages to your BOP insurance to meet your specific needs. If you have employees you can add workers’ compensation and if you drive for work you can add commercial auto.

It’s essential to make sure you and your employees are covered whenever you are behind the wheel. Add HNOA coverage when you purchase a commercial auto policy for coverage when you or your employees drive a rented vehicle. It can also provide protection if an employee sometimes uses a personal vehicle for work.

Depending on the policy you purchase, coverage can pay for expenses up to your policy limit:

  • If someone’s property is damaged
  • If someone other than you or an employee is injured
  • If you have to defend a lawsuit or pay a legal judgment

Any business owner or employee who uses rented vehicles or employees who occasionally use a personal vehicle for work purposes can benefit from HNOA coverage. Here are some real-world examples of how it works:
Construction trades
Your employee is picking up a few random materials for a home remodel job using a personal vehicle. They accidentally back into your client’s garage door, and now it won’t open. Your HNOA insurance will help pay for repairs to the garage door after your employee’s personal auto policy reaches its limit.
Real estate professionals
You ask a part-time assistant to put up signs for an open house. While driving to the property, they get into an accident. When your assistant’s personal auto coverage reaches its limit, your HNOA insurance will help pay for damages to the other vehicle.

Commercial auto insurance is essential for vehicles used for work, and it’s required by law in most states. It can help pay for expenses not covered by personal auto insurance if you or an employee get in an accident while driving for work.

For example, if you have two trucks owned by your construction business and one is damaged after an employee accidentally backs into a cement wall, your commercial auto insurance could help pay for repairs. If someone is injured during the accident, your coverage could also pay for medical expenses up to your policy limit.

If that truck were a rental or a vehicle owned by one of your employees, commercial auto insurance typically wouldn’t cover the expenses. With hired and non-owned auto insurance, you expand your coverage to include rented vehicles and occasional use of employee-owned vehicles.