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Why Should You Buy Insurance for Your Small Business & House

Anil Sood is a well-established businessman in Ahmadabad, Gujarat. He is a dealer in metals and deals in different kind of metals selling them in various parts of India. He has been in the same business for last 20 years and by god’s grace, has been making good profits.

Recently, he decided to build a new multi-storey building wherein he constructed his office on the ground floor and kept the second and third floor for the residential purposes. He also had a car parking space on the ground floor where he parked his two cars, and two to three lorries. These lorries are his business assets and used for delivery and pickup of goods.

As listed down by Anil, his complete valuable assets list includes:

  • A three Storey building with a ground floor parking
  • Office contents:
    • An Iron Safe for keeping excess cash and valuable papers
    • Furniture including large oak table, sofa, coffee table and three chairs
    • Three lorries, two of which are still on loan
    • Scrap and sorted material as stock in trade at the warehouse
  • Home Contents include:
    • Furniture including beds and Almirahs
    • Two cars,
    • Electronics, and other equipment
    • Paintings and some antiquities

Ensuring Safety of the Assets

Anil has been careful enough to opt for earthquake resistant design of the house and install firefighting equipment inside and outside. With burglary alarm and everything else, he feels he has done everything there is to ensure his home and business are safe from any of the perils that may cause harm.

The vehicles are insured separately and thus covered from any mishaps on the road. Other than that:

  • Proper structuring and detailing was done so as to make sure that the building could withstand earthquakes without any loss of its structure.
  • All the electrical fittings installed were fireproof so that they do not catch fire due to electric shocks.
  • The main electricity box was placed on the outside wall of the building so in case if there is a short circuit the risk of catching fire is minimized.
  • The building was built on the elevated ground to make sure water cannot enter the building in case of floods.
  • It was also made sure that all the combustible material like gas cylinders, kerosene, etc. are placed outside the building in the safe
  • High-quality locks and camera were installed in the whole building to avoid the risk of theft.

What is Anil Missing?

One fine day the family left the house for a marriage function leaving a guard on duty and relying on all kinds of alarms. Upon return, they found the guard inside the house tied up and gagged, and some paintings, jewelry and other valuables missing.

Usual procedures followed but some important things and valuables worth Rs. 250,000 were lost in the heist. The burglars were later apprehended, but valuables and cash worth only Rs. 50,000 was recovered.

He was missing the property insurance. Anil realised the chunk in his security armour, as there was no other way to recover the loss.

What Could Anil Have Done Better?

Apart from all the safety measures, he could have insured his building with a property insurance that would have helped him to reduce the burden of loss on his pocket. Even his warehouse is prone to similar risks, and insuring the contents within will offer him the cushion to bank on in case of any loss.

He could use the following insurance policies:

  • Building/Home insurance
  • Content Insurance
  • Shop & Office Insurance
  • A Motor Fleet Policy
  • A Warehouse policy for stock and goods in trade
  • Other optional covers may include: Public liability insurance and Commercial Crime Insurance to protect against employee dishonesty, as his business depends very much on workers’ honest

Why Insurance?

In short, the following reasons should be considered for insuring the property and assets:

  • Property insurance policies offer comprehensive coverage to all kinds assets, be it valuables, cash, jewellery, antiques,
  • Insurance cover includes all kinds of risks as well including nature causes, burglary, theft, etc.
  • Cover for antiques, for which market value cannot be determined, is decided based on the agreed value,
  • Insurers consider anti-theft and fire-extinguishing equipment for a discount on the premium for such policies.
  • A single policy can be taken for all the vehicles combined, which will cost far less than the total premium of separate policy

Buying Insurance for Your Shop & House

Owning a property or a building is one of the largest investments to make in one’s lifetime. Thus, it is essential not only to protect it but also have a financial cushion for the future losses.

Now, buying insurance for property and house is similar to buying any other relevant products for your household. A good insurance policy will bring a smile to your face in the times of difficulty, and a bad policy can be the cause of a lot of headaches.

This is where, online insurance advisors like SecureNow fit in with their offerings, such as, multiple policy comparisons, advisory on which insurance to buy and managing multiple policies. This route is preferred for those looking for hassle-free and informed insurance buying experience.

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