Important Business Insurance Plans for Thailand
What are the important business insurance plans in Thailand? Let’s take a look!
Business Insurance Plans In Thailand
Starting and running a business in Thailand means that you will constantly be facing risk from all angles. From natural disasters to financial and even political risks, you must take action to offset these risks from the start. One of the best ways to do this is by having the right business insurance plan.
A business insurance plan is a series of different company-oriented insurance options that your company may purchase to cover any potential risks you can face. Having the best business insurance options in Thailand provides you with more than just peace of mind. It is essential, and in some cases, a legal requirement for your business’s safety and management.
Since business insurance is a collection of policies, it’s important to remember that each company’s strategy would be different. To put it another way, what works for your nearest competitor may not be suitable for your company’s requirements. It’s important to create a solution that can serve your company’s needs.
Although every company will require a different business insurance plan, every successful business in Thailand will contain the following plans:
Key Points
- A business insurance plan is a series of different company-oriented insurance options that your company may purchase to cover any potential risks you can face.
- Since business insurance is a collection of policies, it’s important to remember that each company’s strategy would be different.
- There are seven business insurance plans you may consider.
General Liability
General liability insurance is a must-have for any company, regardless of size, and can be one of the first things you look at when looking for a business insurance solution for your company.
This insurance protects your business from claims of bodily injury and property damage caused by your company, your employees, or even third parties (such as stakeholders).
Here are some examples of what general liability insurance can cover you for:
- Repair costs to fix a wall your employee accidentally damaged while working at a customer’s house.
- Medical expenses of a customer or client if they slip and fall within your business premises.
- Judgments and settlements from a client or customer’s lawsuit.
- Legal costs to defend your business in a lawsuit.
In addition, general liability insurance can also cover claims of reputational harm that result from malicious prosecution, wrongful eviction, and more. If your business experience an advertising injury, such as copyright right infringement from your business’ ads, the insurance will help protect you as well.
Professional Indemnity
No matter how experienced you are or how long you have run your business, errors can still occur during daily operations. Even small errors can lead to bigger problems and even become costly. However, if you have professional indemnity insurance, you will be protected if you or your employee make a mistake.
Professional indemnity insurance is designed to cover any bad advice your company or your employee gives, leading to a client suffering loss or damages. It also covers lawsuits resulting from your alleged failure to deliver or your improper delivery of professional service.
For example, you own an architecture firm, and you or your employee make a mistake while designing a house, then the house later collapses, your client could sue you. In this case, the insurance will help you compensate your client for the financial loss that they suffered due to your mistake.
Starting and running a business in Thailand means that you will constantly be facing risk from all angles. Therefore, make sure your company is adequately protected.
Business Interruption
Business interruption insurance can help replace the income your company lose if you can’t open temporarily due to a covered loss, such as property damage.
For example, if a tree falls on your office roof and you have to shut down for repairs, the insurance will help cover the costs of your lost income while your office is being repaired.
Business interruption insurance may also cover a civil authority, such as a government-mandated road closure that forced your business to close temporarily. Some business interruption insurance plans may even cover you if your business has to shut down due to a pandemic.
Here are some of the operating expenses business interruption insurance may help you with:
- Revenue that you would normally make if your business was open.
- Loan payments that you need to make during the time your business is temporarily closed.
- Mortgage, rent, and lease payments for the space your business operates from.
- Payroll for your employees.
- Extra expenses if you need to rent another space to temporarily run your business.
- Relocation costs if you need to move to a new or temporary location due to physical damages.
Property and Asset
Property and asset insurance protects both your building (if you own it) and the contents or property you have within your office from things like fire, theft, floods, vandalism, and other damage. In some cases, it may also cover assets like machinery, computers, inventory, tools, and more.
Since every business has assets and may represent a substantial investment, having property and asset insurance is very important.
For example, if you operate a retail business and floods damaged your building, the insurance will cover both the costs of your property’s repair and the cost to replace your stocks.
Even if you operate a service business with no stock and fewer physical assets, you may still want to consider getting this plan. Property and asset insurance also cover intellectual property, technology, and financial reserves essential to your operations.
Having the best business insurance options in Thailand provides you with more than just peace of mind.
Employer’s Liability
Employer’s liability insurance is among the most important business insurance plans you need to consider. In fact, it is a legal requirement.
Employer’s liability insurance is designed to protect the most valuable asset of your business, your employees, against work-related injuries or damages that they may suffer while on the job. It will also protect your business in case an employee sues you over a work injury or illness. For example, if you run a restaurant and the chef experienced a burn caused by a faulty fryer, and they sue you, the insurance will cover the legal defence costs.
Directors and Officers
Directors and officers insurance, or commonly referred to as D&O, protects the personal assets of corporate directors and officers, as well as their spouses, if they are personally sued by customers, employees, vendors, investors, competitors, or other parties, for alleged or actual wrongful acts in managing a company. It doesn’t only cover the officers and directors, but also your company. In other words, if a director of your company does something that results in a legal situation for your company, the plan will cover the damages and costs.
Health
Also known as group or corporate health insurance, these plans are made to cover your employees’ medical expenses. Health insurance is important, whether you run a small business or a large corporation. It protects your employees from various risks, such as illnesses, accidents, financial losses, and more.