Business Insurance 101: Protecting Your Enterprise

Your business needs protection too. From fire to liability, business insurance covers risks that could shut down your company. Learn what types exist and what you actually need.

By Aniket Bang, CFA, CRO, IndSure

Business Insurance 101

Your business needs protection. From fire to liability, business insurance covers risks that could shut down your company.

Types of Business Insurance

  • Fire insurance: building, equipment, inventory (₹50k–₹5L/year)
  • Public liability: customer injuries, property damage (₹10k–₹50k/year)
  • Professional indemnity: errors, negligence (₹20k–₹2L/year)
  • Key person insurance: founder/CEO death (₹1L–₹10L/year)
  • Business interruption: loss of income (varies)

Who Needs Business Insurance?

All businesses, from startups to enterprises. Fire can destroy crores in inventory. A customer-injury lawsuit can cost ₹10L+. A cyber attack can breach customer data.

Cost

Premium depends on business type, revenue, employee count, location, and risk level. Small business: ₹50k–₹2L/year. Enterprise: ₹5L–₹50L+/year.

That's the menu. Which of these covers your business actually holds—and what each one excludes—is in the policy wording. Check what YOUR policy actually says.

Frequently asked questions

Is business insurance mandatory?

Some types are mandatory: Workers compensation (if employees), public liability (if customers visit premises). Fire insurance often required by landlords/banks. Others are optional but recommended.

What does professional indemnity cover?

Errors, negligence, omissions in professional services. If client sues for losses due to your mistake, insurance covers legal costs + damages. Essential for consultants, lawyers, doctors.

Do I need key person insurance?

Yes, if business depends on founder/key employee. If they die, business may collapse. Key person insurance provides ₹1cr+ payout to business, helping it survive transition.