7 Insurance Products Every Company Should Buy to Safeguard Their Employees

New Delhi (India), June 4: In today’s competitive job market, attracting and retaining top talent is essential for company success. A comprehensive employee benefits package is one of the most effective tools available to companies. 

Beyond traditional offerings such as health insurance, there exists a diverse array of insurance products designed to safeguard the well-being of employees, thereby enhancing the company’s overall success. 

This article examines seven essential insurance products that every company, regardless of size or industry, should consider to establish a comprehensive safety net for their workforce. 

List of 7 Important Insurance Products For Employers

Companies provide various insurance products for employees, ensuring financial security and support for their well-being and future needs, with coverage spanning health, life, and more:

Group Term Life Insurance

Group term life insurance is a single policy covering a group of people, often employees, offering affordable death benefit protection for their loved ones.

Group life insurance covers employees for a set time. Employers pay premiums to keep it active. If an employee dies during the policy, the employee’s family gets money. It’s often a free perk from companies.

A group life insurance plan requires a group administrator to pay the first bill, keeping the plan active for a year and renewable annually. The cost depends on the group’s age and size. Participants can choose their coverage amount and payment method.

Group-term life insurance can be helpful in various enterprises, such as small and medium enterprises, banks, non-banking financial institutions, and employer-employee groupings. 

To apply for group term life insurance in India, an informal non-employer-employee group must have at least 50 members. Still, a formal employer-employee group must have at least ten members. Nevertheless, each plan has a different minimum member requirement for purchasing group insurance. 

Group Health Insurance

A group health insurance policy is a personalised health insurance plan created to shield a group of individuals from various medical costs, both major and minor.

Employee health insurance covers a company’s workers under one policy, with the employer paying the premiums. Employers gain from tax reductions, and the price is significantly lower than individual health insurance plans, making it advantageous for both the company and the employee.

Even if you have been generally healthy, there may come a time when hospitalisation for some medical condition is necessary. In such cases, your group health insurance can cover the expenses, subject to the terms and conditions of your policy.   

Group health policy is crucial health insurance for individuals working in the public sector or businesses of any size. In India, those eligible for group health insurance include government employees and employees of private companies with 20 or more workers.

With at least seven employees can purchase one group health insurance together. This will benefit any company in terms of tax savings and provide financial security against medical problems. 

Workmen Compensation Insurance

Workers’s compensation insurance is a policy that covers your company’s employees if they are injured on the job or become disabled.

This regulation applies to employers who wish to compensate their staff members for work accidents. It helps employees receive the care they require in the event of illnesses, physical injuries, disabilities, or deaths brought on by accidents while they are on the job.

If you are a construction company owner, something may fall from a higher level onto one of your employees at a job site, breaking their leg. If you do not possess workers’ compensation insurance, they may file a lawsuit and demand payment for their medical costs, which may be very expensive for your company.

Any business with employees should consider obtaining a worker’s compensation insurance policy. 

Workers’ compensation insurance is required for all enterprises (including manufacturing units) with over 20 employees.

Long-Term Disability Insurance

An employee who cannot work owing to a protracted illness or accident may be eligible for benefits under long-term disability (LTD) insurance, sometimes called income replacement insurance. 

Benefits from LTD can replace between 50 and 70 per cent of an employee’s pre-injury wages. When an employee is unable to work, benefits might assist them in maintaining their level of living since they are paid directly to them. 

If a long-term illness or injury keeps you from working, long-term disability insurance provides a financial safety net. Depending on the policy, it can replace all or a portion of your income for years, even your whole life.

If a disability prevents you from working, this can help you maintain your living level and provide comfort during difficult times. Long-term disability insurance (LTD) is relevant for businesses of all types, including more extensive and smaller companies. 

The minimum age to obtain disability insurance is 18 years, and the maximum age is 70 years. The minimum and maximum coverage amounts differ depending on the insurer.

General Liability Insurance

General liability insurance is one type of business insurance that can help shield you from claims arising from property damage or physical harm caused by your business activities, its products, or your premises.

A general liability insurance policy can shield your company from any claims made against it by third parties, such as clients, customers, or business associates. 

Companies require insurance coverage to shield themselves from legal responsibility for losses or injuries to third parties, personal injury, advertising injuries, and any losses or injuries resulting from their company’s operations.

 If your business frequently interacts with vendors, clients, and customers, involves extensive travel, represents clients, engages in manufacturing, or provides professional services, it needs general liability insurance.

General liability insurance is relevant for companies of all sizes. However, the specific needs and costs will vary depending on the company’s size and operations.

Property Insurance

Property insurance covers a person’s building and belongings, whether in their house, flat, place of business, café, or hospital.

Anybody who owns the property, whether it’s their home or the offices they use for business, should ideally have property insurance to protect themselves against significant losses and damages that may result from unanticipated events like a fire, explosion, natural disaster, or even burglary! 

If your company’s physical structures are damaged by fire, hail, theft, wind, smoke, or vandalism, business property insurance will pay to reconstruct them. 

This policy is eligible for micro-level enterprises like restaurants, hotels, and offices; even small business owners and large enterprises can have this insurance.

It applies to businesses of all sizes. However, the kind and scope of coverage will change based on the type and worth of the business’s assets.

Commercial Auto Insurance

If you run a business with vehicles, it’s important to get the best commercial auto insurance. This insurance protects your vehicles financially and is required by law in India.

A commercial vehicle insurance policy covers losses and damages when a business vehicle and its owner-driver are involved in collisions, accidents, fires, natural disasters, etc.

This insurance is crucial if your company uses or owns many commercial vehicles. It covers vehicles used for transportation of employees (such as taxis, cars, buses, etc.), freight (such as trucks, tempos, lorries, etc.), and special vehicles used for mining, farming, or construction.

All enterprises must purchase commercial vehicle insurance, including trucks, rickshaws, cabs, buses, tractors, and commercial vans.  

Commercial auto insurance is vital for businesses that use vehicles for operations. It ensures coverage against accidents and damages on company-owned, rented, or leased vehicles.

Safeguarding employees is crucial for any company’s stability and success. Measures include support for health, life, disability, and workers’ well-being, alongside protection against liability, property damage, and business interruptions. 

By securing the right insurance coverage, you can protect your workforce from unforeseen events and demonstrate your commitment to their well-being.

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