The question is: what are industrial insurance? All businesses from any industry, including telecommunications, manufacturing, gas, and oil, face several risks daily. However, the risk to every industry is unique. Luckily, you can get comprehensive coverage that is unique to the specific risks of your business.
You can get help from insurance agents to make it easier to choose the insurance policy your employees and your business need. But before anything else, you should know and understand more about industrial insurance. This post will talk about why you need it, what policies you should take, and many more. Keep reading!
2 Categories Of Industrial Insurance
This type of insurance is comparable to the compensation given to workers at some point. But for most companies, this is comprehensive coverage that will protect the employees and the commercial operations. This is why there are two categories of industrial insurance. Let’s discuss them below:
#1. Workers compensation
This covers any work-related fatalities, illnesses, and injuries by providing compensation in medical costs, replacement income, or support to the victims or their families. The laws vary in every state, so ensure to coordinate with the insurance agent about your location and specific needs.
The workers’ compensation is specifically designed for the protection of both the employer and the workers. Basically, it will pay a portion of the wage of the employees as they are recovering. The same is true if a worker cannot work for a long period or cannot return to work completely. As an exchange, the employees are prohibited from suing their employer for any injuries that they will suffer.
But take note that the legal exclusions and requirements vary across states.
Some states require the business to acquire worker compensation even if it does not have employees for as long as it is in business. Other states would only require this if a particular number of employees is reached.
#2. Commercial insurance
This provides the total commercial coverage that industrial corporations need. However, since these corporations deal with specific risks unique to their industry, they need customized insurance plans to cover those risks.
This could include risks from toxic or flammable substances. Or the risks posed by using huge commercial trucks and heavy-duty equipment of machinery.
6 Examples Of Industrial Insurance Policies To Include
What are industrial insurance? The coverage plan of each company will depend on various factors like workforce size, customer risks, risks in the work environment, and materials workers handle. For instance, your company might need any or the combination of the following insurance policies.
#1. General liability
What is general liability? This type of policy will cover the property damage and bodily injury claims of customers of any non-staff visitor. It has its other term known as commercial general liability insurance (CGL).
#2. Equipment breakdown insurance
This type of coverage will protect the business from the risk of electrical infrastructure breakdown and the key pieces of the equipment on which the company operation relies. In terms of the amount and type of coverage you need, it will depend on the industry and the equipment used. As for the standard industrial insurance, there is also a material damage policy covering for any accidental damage.
#3. Property insurance
What is property insurance? Property insurance, as what insurances are for, has the purpose of protecting the structure or property of the one availed the plan by covering the damages of grounds and buildings from an array of causes which could include severe weather or fire.
#4. Business interruption insurance
This insurance policy will cover the loss of income caused by an event requiring business downtime. Meaning to say the company will replace the lost revenue, and your business can keep functioning even during rebuilding or repairs.
The business interruption can happen following the damage of the property or physical loss. But take note that the loss of income arising from the breakdown of the machinery can be optional.
#5. Product liability
This will protect you against claims to the company due to illness or injury that resulted from the use of the company products. Products liability is placed into effect when the product caused certain damage. The company, the people in charge of assembling the parts, and the store owner will be involved.
#6. Commercial vehicle insurance
All the vehicles used off or on-site should also be covered by insurance. This includes your tankers, delivery vans, company cars, utility vehicles, tractors, commercial trailers, and even your personal car, which you use for work.
Other than the aforementioned insurance policies, you might also need other coverage types that can meet the company’s risk management requirements. For instance, the company may also require officers’ and directors’ liability to cover the leadership actions.
It’s A Wrap!
It is important to purchase industrial insurance since it protects both sides. Ensure to find an insurance agent that is knowledgeable about the requirements and laws of the state.
Regardless, you should also assess your company’s insurance plan so that your business will remain protected in case of an employee injury. Hopefully, this article about “What are industrial insurance” has helped you understand why you need to ensure your employees and business.
Furthermore, our team hopes that you know what particular insurance would get for your business. Regardless, you might want to learn how long you should wait to plug in a fridge after moving it if you still want to read informative articles. That is all.