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Commercial insurance safeguards your business against potential losses that are unforeseen. If you are planning to purchase commercial insurance, you must know the detailed list of documents to ensure a smooth buying process.
Purchasing the right commercial insurance is more of a necessity than an investment. The reason is very simple: every business is prone to risks, and you never know when you might find yourself in a financial crunch arising from such an unforeseen risk.
When it comes to buying commercial or SME insurance, different insurance providers have different requirements based on your business type, size, location, and other factors. However, there are some documents that are commonly needed for a business insurance application.
In this blog, we will briefly discuss all those commercial insurance documents. Keep reading!
What is Commercial Insurance?
Commercial insurance, also referred to as business insurance, is insurance that offers financial coverage for the risks and losses associated with a business. There are several commercial insurance policies that allow businesses of all types and sizes to safeguard themselves against potential financial losses. Some common examples of commercial insurance include insurance for a warehouse, a store, or a vehicle.
Types of Commercial Insurance in India
Below are the most common types of commercial insurance available in the country:
- Transit Insurance
- Shopkeeper’s Insurance
- Commercial Vehicle Insurance
- Liability Insurance
- Warehouse Insurance
- SME Insurance
Documents Required For Purchasing Commercial Insurance in India
As discussed above, the document required for purchasing commercial or business insurance varies depending on the type of policy and insurance provider. But there are certain documents that are commonly required by most insurance companies:
- Business Registration Documents
It is one of the most common commercial insurance documents. Most insurance providers require copies of your business registration papers as a part of their verification process.
- Financial Documents
When purchasing business insurance or SME insurance, you may also be asked to provide your financial documents such as bank details, bank statements, Income tax* and GST@ documents, and so on.
- Vehicle Details (if applicable)
If you are purchasing insurance for a commercial vehicle such as a truck or a taxi, you will be required to submit complete vehicle details, including the registration papers, license, and so on.
- Employee Details
For employee-related or worker’ compensation insurance, you may be required to submit a complete list of employees/workers along with their roles and responsibilities in your company.
- Previous Insurance Details (if any)
If you have purchased a commercial insurance policy before, you will be asked to submit your old insurance details.
- Permits and Licenses
If your business has some legal obligations, the insurance company may ask you to submit all the necessary permits and licenses you have acquired to run your business legally in the country.
- Legal Agreements
In some cases, insurance companies also require legal contracts and agreements between your partners, suppliers, and other business stakeholders.
Besides these documents, some insurance providers may ask you to fill out a specific commercial insurance proposal form, depending on your requirements and preferences. Therefore, it is advisable to get in touch with your insurance agent or with the insurer directly before starting the process.
Final Thoughts
Commercial insurance is necessary for all businesses irrespective of their type, size and industry. Not only does it cover the insured business against unpredictable risks and losses, but it also ensures that the firm stays aligned with the legal requirements.
Whether you are planning to purchase commercial or SME insurance, the above-mentioned list of required commercial insurance documents will help you navigate the process smoothly.
