Insurance Policies for Small Business

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Insurance Policies for Small Business play an active role in covering the success or failure of a business venture undertaken on a small scale. Small business insurance plans have gained importance in the last few years triggered by an increase in cutthroat competition among big organizations and the need for survival of small businesses.

A small business can be defined as a venture or firm which functions on a low level of production and constitutes lesser number of shareholders as compared to its large business counterparts. Thus, these small ventures are incapable of attaining the advantages of the market scale and are therefore safeguarded by their respective governments. A consistent capital flow, frequent development and invention of advanced technology can help in expanding the venture in a smart way besides guaranteeing their market presence.

Small business insurance plans are vital instruments which provide monetary security to the owner and its stakeholders but the retirement plan under this policy also helps in providing long-tern retirement benefits to its employees as well. Insurance Policies for Small Business, hence, cover all unanticipated mishaps, excluding few, which can be availed at reasonably priced rate of premium.

Insurance Coverage for Small Business :
  • Business property
  • Travel undertaken for business purpose
  • Debt
  • Loan undertaken for business purpose
  • Expenditures incurred during business operations
  • Eemployee's compensation
  • Surplus debts
  • Life
  • Recruitment practices debt

Health insurance plans for Small Business

One of the vital aspects of small business insurance plans are the health insurance schemes for small ventures provided by the insurance firms for assisting a healthy workforce in the firm and safeguarding long term medical expenditures met by small business during its operations. In an attempt to keep the long-term medical expenses at bay and its impact on the recruitment, health insurance plans under Small Business insurance policies comes with following benefits -

  • Improved productivity of the workers
  • Advanced administration of health care expenditures
  • Reduction in levels of illnesses and injuries leading to decrease in absenteeism by the workers

Companies offering Insurance Policies for Small Business in India

Small Business Insurance Policies in India is not as popular as it is in the USA, with many banks and financial firms joining hands to move forward in that direction. In the past few years US Small Business Administration (SBA) took the initiative of entering into a joint venture with India's Ministry of Small Scale Industry, in an attempt to boost the nation's inter-agency alliance and locate prospects for strategic partnerships between the SBA and India's small and medium enterprises (SME). The pact has assisted India to expand its fiscal activities besides creation employment in both the nations.

  • US Small Business Administration (SBA)
    The US Small Business Administration (SBA) provides its customers a Small Business Administration Categories especially for individuals who are prospective businessmen. The plan incorporates a catalogue for illustrating business initiatives, choosing the appropriate legal format and assessing franchisee prospects. The categories for businessmen in the first year of their venture and early level categories for those between 1-5 years of businesses are also offered by the plan. It also provides loans for small business by working as an insurer for small businesses borrowing from conventional granter.

  • Wells Fargo
    Another American firm which has its sub-division in India and is a prominent small business lender is Wells Fargo. The financial firm provides banking, assurance and investment acknowledgement facilities to small ventures.

  • Tata AIG General Insurance Company
    Among the Indian companies Tata AIG General Insurance Company Limited provides small business disclosures along with alternate insurance in the form of Multiline Package Policy. It is a pre-endorsed packaged scheme incorporating assets, offense, casualty, employee income, unanticipated events and medical, marine and monetary products. It also provides the service of a computerized policy and constitutes basic underwriting policies at affordable rate of premiums.

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