Why warehouses need an insurance policy

All thanks to the rise in e-commerce industry in our country, courier services and warehouse sector has seen an unprecedented boom. Undoubtedly, this has created several employment opportunities but maintaining a warehouse is also not a cakewalk.

Most logistics parks in India have a large amount of working employees, machines, and goods; and all of them need proper care. Hence, getting an insurance policy is no brainer. As easy as it may sound, getting an insurance policy for warehouse is a complicated process. It involves a lot of documentation work and there are several types of insurance policies involved that managers have to look after. Let’s delve a little deeper into the subject. 

There are mainly two types of insurance policies in India: Life insurance and general insurance. Life insurance is generally used for households and usually considered a must for people who run a family. General insurance on the other hand is used for protection of assets and business in general. Every asset has a value of its own and the main aim of general insurance policies is to protect the economic value of assets, our assets can be damaged or be victims of accidents at any point of time, no one can predict such events, hence it is important for us to understand the benefits of these insurance policies in order to protect our assets and ourselves.

Let’s understand different types of insurance policies in a bit more detail.

Property insurance: This insurance should be insured by every manager who owns Supply chainsin India. Property is one of the most valuable possessions for anyone. Property insurance covers all the potential risks to your house or property under a single policy; it also provides protection against other properties or assets, which are of interest to the people buying the policy. 

Health insurance: Warehouses are highly susceptible to man-made hazards and all employees are always under one threat or another. Health insurance is considered to be very vital as it protects humans from sudden illnesses or accidents, by covering the medical cost which is required at the time of emergency. 

Personal accident insurance: This insurance policy allows full compensation for injuries and even loss of life caused by an accident. It also includes compensation of the cost of treatment and the use of hospital facilities in the process of treatment. This one is yet another important health care policy that every warehouse manager must ensure.

Travelling insurance: Travel insurance covers the insured against any unexpected events or misfortunes while travelling, like personal accidents, medical expenses and even against the loss of checked luggage and passport.  

Liability insurance: This policy is designed to protect the job of warehouse managers and employees. Sometimes, fellow employees or perhaps due to some misunderstanding one can land up in a situation where one can lose their job. This insurance policy protects one from that situation.  

Motor insurance: Supply chains and warehouses contain a large amount of machines and heavy equipments that must be ensured. As per the motor vehicle act, every motor vehicle running on the road has to be insured, which covers all the liabilities and damages caused to the vehicle.