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Know About The Relationship Between GST and Gold in 2021
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Know About The Relationship Between GST and Gold in 2021

by Alex D
written by Alex D

Since its implementation in 2017, Goods and Service Tax (GST) has brought many significant changes in the economy. The most noticeable change was noticed in the price of various goods and services. 

For instance, gold ornaments are one of the few items that feature GST at different rates. While GST on gold is levied at 3%, an additional 5% GST is added on gold jewellery. So, if you are planning to buy gold, you should be aware of the impact of GST on gold to make an informed decision.

Following are a few highlights of how GST impacts gold in 2021:

  1. There is a 3% charge on gold under GST. However, if the gold features additional work, the GST will go up to 5%. In the case of exchanging old gold with new, adjustment of GST is made according to the purchase.
  2. Any changes to the old jewellery or even making a new one will attract 5% GST. This also includes gold polishing. 
  3. No GST is applicable for old gold resale if the buyer intends to purchase new gold jewellery with the money. In simple terms, you need to purchase new gold in exchange for old gold to avoid any tax. Before implementing GST, a tax of 3% was applicable on selling gold even if you intended to buy new gold along with it.
  4. If you intend to buy from an unregistered supplier, you will be paying taxes on the reverse charge mechanism. Provisions for unregistered suppliers are compulsory to ensure the prevention of illegal gold trading.

GST on gold imports

GST is applicable on the import of gold from one state to another through IGST at 3%. Moreover, international imports do not require GST. 

Additionally, in the case of gold imports made from outside India, custom duty at the rate of 10% is applicable. The import of gold in such cases is made in the form of semi-finished, raw, or gold bars. After the process, the cost is passed upon the end-user, and GST is further chargeable on top of customs duty paid by the importer. 

Further, to know all about the GST bill, go through the brief highlight of taxes applicable on jewellery manufactured from imported gold:

  • 10% customs duty on imported gold
  • 3% GST applicable on gold value
  • 5% GST for making charges of the jewellery

The 5% GST for making charges on gold varies from one jeweller to another, which further impacts the GST on the purchase of gold. 

GST on the gold exemption

Besides the other impact of GST, the tax scheme also introduced an exemption. The notified agency made the exemption to GST-registered exports of gold jewellery. 

This exemption helps to reduce the burden of GST on exporters of Indian gold jewellery. It also increases the competitiveness of gold in the global markets. Moreover, this newly introduced GST on gold exemption will also affect domestic buyers. 

GST compliance also makes business owners eligible to avail of loans to fund their expenses. Top NBFCs and commercial financial institutions in the country offer high-value business loans to eligible borrowers. Furthermore, certain NBFCs like Bajaj Finserv provide business loans with no collateral and a Flexi loan facility. 

If you are an existing customer, you can also avail of pre-approved offers to streamline the loan application procedure. These offers are applicable on various financial products, including business loans, personal loans, etc. To check your pre-approved offer, you simply need to enter a few basic details. 

Apart from these, there are certain ways GST affects gold jewellery. These are explained as follows.

Impact of GST on gold from a buyer’s perspective

  • Before GST, the tax rate on gold was 2% (1% VAT plus 1% service tax). After the implementation of 3% GST on gold, the marginal price of gold has increased.
  • The government is further trying to reduce India’s gold imports and lower the current account deficits.
  • This is because India is a net importer of gold, and most of the imported gold is used in jewellery making.

Impact of GST on gold from a seller’s perspective

  • A large portion of India’s gold market is unorganised. The transparency has increased with the implementation of GST. However, it is only beneficial for its organised sector.
  • Hence, many experts believe that a large number of sellers will move into the unorganised sector to avoid GST on gold sales.

Gold is one of the most solid investments of all time. This tax regime has brought sweeping changes to its organised sector. 

 

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Finanace

Staying Afloat or Being Affluent – How to

by robertparker
written by robertparker

To stay afloat in times of economic turbulence is what most people are striving for at these times. Having a decent income is one of the prerequisites, but exit from the rat race and reaching financial independence is, above all, a mindset to acquire. Besides the proper attitude, there are other factors in the financial stability equation, and we will tackle them within the following lines.

Passive income holy grail of financial independence

The excellent method of achieving financial independence is covering expenses with passive income. It’s a method to use to access that holy grail of financial independence more quickly.

Passive income should provide you with reliable cash flow with minimum effort and enable you to win more wiggle room for achieving financial goals such as getting rid of debt, saving, and investing money. Some of the ideas: creating online courses, writing an ebook and selling on Amazon, investing in shares etc.

However, some initial work has to be done in the initial phase for setting up the passive income system. For instance, if you want to make passive income through online courses, you will need to set proper methodology, educational material and work on your social media image.

Start investing in financial markets.

Of course, saving should be at the core of your financial plan to achieve more significant goals. But after some time, when the money starts piling, you should start making your money grow.

There are many ways to make your money grow. The first that comes to one’s mind is the savings account with a good interest rate. But, what many are prone to overlook is investing in stocks, foreign currencies, or cryptocurrencies. The latter is relatively new but turned out to be the best investment during the last year.

Many people tend to associate investment with high-level financial expertise. The truth is that markets such as Forex, to take the most prominent example, are easy to navigate.

Of course, you will have to learn and train yourself. And there is tons of free training material online. Once you have selected the right Forex broker, or crypto broker, depending on your asset type, you just need to follow the market trends, news, and chart analysis in order to make the proper investment decisions.

Real estate – a great vehicle to make your money grow

Why real estate? The answer to this question is simple. Real estate offers returns on invested capital ranging from 17% to 35% or more. No other investment vehicle offers such returns.

Above all, real estate is the investment vehicle that allows it to use leverage. There are several ways of using leverage to achieve the returns mentioned above:

First and of course, bank leverage through the mortgage. Then, the rental type leverage (long term, seasonal, short term). In general, the shorter the duration, the higher the yield.

Finally, there is a leverage of the renovated property. Buying an inexpensive property, renovating it, and renting it out for a short period could offer a return exceeding 50%.

There is also marketing. Using a platform like Airbnb, you can reach many people very quickly without putting in too much effort. The site takes care of it, for a small fee from us (3%), which is super interesting.

Thanks to these returns, your real estate investments could generate cash flow every month, thanks to the rents received from my tenants.

In Conclusion

Staying in a good financial position is a harsh task but possible to achieve. From the overall perspective, the order of rolling out the steps of your financial plan should be:

  • Setting budgeting goals.
  • Earning more through passive income.
  • Making money grows through investment.

And also, don’t forget strict discipline when it comes to all of the steps of the way. Juggling between saving, investing, and earning can be a tricky task, so it’s always welcome to search for help from your financial advisor.

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Finanace

A Complete Guide To Compare Two Wheeler Insurance Plans Online

by robertparker
written by robertparker

One in three Indian households owns a bike or a two-wheeler. A two-wheeler is not just an affordable means of commuting, it is also quite convenient to ride and easy to manage. When a bike is purchased, it has to have insurance coverage, under the Motor Vehicle Act, 1988. If you are caught riding without an insurance policy, you can be charged with a punishable offence. Therefore, when buying a bike, you need to cover it with an insurance plan. 

But with the market flooded with two-wheeler insurance policies, it may become a little overwhelming to choose the right plan. The best way to do this is to compare two-wheeler insurance plans. If you or someone you know is planning to buy a two-wheeler, here is a complete guide to compare two-wheeler insurance plans. 

When you have to compare two-wheeler insurance plans, only comparing the premium is not enough, keep in mind the following points:

1. Compare the Two Kinds of Policies

As you know there are two main types of two-wheeler insurance plans:

  1. Third-Party Liability Bike Insurance
  2. Comprehensive  Bike insurance
    Based on your needs, you first need to decide what kind of insurance would be more suitable for you as well as your bike. Look out for the coverage that both types offer and then weigh the pros and cons of each.

2. Compare the Exclusions

While focusing on what is included in the policy, you need to keep an eye on what is not included in the coverage. Go through the list of exclusions when surfing about two-wheeler insurance online. This would save you from any kind of heartburn later.

3. Compare the Discounts

When you compare two-wheeler insurance online, it is also important to compare the quotes offered by different companies. Go through different plans carefully. Rather than picking a plan that has the lowest premium, opt for a plan that offers maximum coverage while being within your budget.

4. Compare the Features Offered

You also need to keep a tab on the add-ons that are being offered by a company. Look for in-built benefits, as they are cheaper. Some companies offer exclusive add-ons like helmet cover, roadside assistance, accessories cover, lock and key replacement cover etc. You should also compare the features of cashless garages. The wider the garage network, the easier it would be to get your bike repaired at a company-trusted garage.  

5. Compare the Reviews

When comparing two-wheeler insurance plans online, you have easy access to the reviews of policyholders about the company and the options offered. A trustworthy company would obviously have positive reviews about its claim settlement process, customer care etc.

Buying a two-wheeler insurance plan online comes with its own set of advantages. You not only get endless and exclusive options but can also select the one that suits you the most, at your own convenience. Another major advantage when buying two-wheeler insurance online is that it becomes very easy to compare two-wheeler insurance plans. 

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Finanace

How Guest Posting Has Changed Over The Years

by sanket
written by sanket

It is a known fact that guest posting helps with increasing a company’s SEO. But it has changed drastically and immensely over the years since the time that it had just made its appearance on the digital scene.

Digital marketers have always relied on buying guest posts as a means to increase brand authority and secure backlinks to help with their content ranking. But today, there have also emerged certain competitive niches that were not to be seen even at least a few years ago.

We have therefore summed up the various ways in which guest posting has seen a change over the years.

1.  Improvement in Content Quality

At one point in time, even a terribly worded guest blog post used to be posted as long as it had the ability to secure a link that could help the company market. As a result, a lot of the blogs were accepting any and all kinds of content. That was until Google intervened and put a stop to the effectiveness of these articles.

This led to filtered and good-quality content finding its way through. Google mandated that posts that get approved must have real readers rather than just be a tool to generate links.

The advent of smartphone usage has also been a contributing factor. Now that almost everyone has a device in their hands, it has led to visible growth of content consumption. People have become selective with the content that they choose to spend time on, and clickbait titles gradually lost their appeal on the way.

2. The Importance of Social Media

As opposed to earlier times, the amount of engagement and interaction with the content on a website impacts its ranking. This makes the role of social media extremely important as nothing else helps in promoting your content better to reach as many people as possible.

3. No More Black Hat Techniques

One black hat technique was the practice of hiding codes in infographics that were a part of guest posts. This technique was practiced in abundance till Google and other search engines penalized the websites that used to do this.

Yet another thing that was in practice was paying for a post to be published without the readers having any knowledge of it. This went against the FCC guidelines and was also attempted to put a stop to, but some bloggers are said to still participate in it.

4.Development of Strategy Tools

Earlier, websites had to rely heavily on guesswork as to if something might end up working in their favor or not. Nowadays marketing departments are easily able to identify the type of content that is supposed to bring them traffic.

This has been possible only for the tracking tools available these days. The data collected for these tools are from Facebook shares or guest post visits, which in turn help them to understand how the information can be turned into an actionable and executable content marketing plan thereafter.

buying guest posts is one of the most important tools that company websites try to use to their advantage in order to generate backlinks. Due to this reason alone, it will continue to be an essential part of the marketing tool that companies will continue to use for years to come. However, the guest post niche of marketing is a constantly evolving process. Therefore, this also means that with time we are also sure to witness even more changes in the nature of guest blogging as we have been seeing so far.

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5 Important Things To Know Before Choosing Critical Illness Insurance
Finanace

5 Important Things To Know Before Choosing Critical Illness Insurance

by robertparker
written by robertparker

According to a recent survey, India’s health insurance sector witnessed substantial growth in premiums at Rs.4074.8 crore in October 2020. With both private and Government-backed schemes getting launched and companies coming forward with investment plans, individuals are able to find affordable insurance policies in the health segment. 

In today’s fast-paced life, having been diagnosed with critical illnesses can take a toll on both health and wealth. The costs of regular check-ups, medicines, hospitalisation, dialysis, etc., are involved in the treatment of critical illnesses like cancer, kidney failure, paralysis, etc. The way medical treatments are getting expensive, it is fair to say that having a critical illness policy is extremely necessary to afford all these expenses. 

Points to remember before buying a critical insurance policy 

Even though most of the health insurance policies claim to cover the essentials, there are some key differences in claim procedure, duration, and some other relevant elements. 

Under a critical illness policy, the policyholder avails a lump sum amount after submitting the documents of the diagnosis information to the insurance aggregators. You can conveniently pay off all the treatment costs, medicines and hospitalisation charges, doctor’s fees with that amount. Since the lump sum amount varies across different insurance aggregators, you should get these details before buying the policy. 

Consider the below-mentioned suggestions before buying the policy. 

  • Know the eligibility parameters 

While looking for the best health insurance policy, it is advisable to check whether you are eligible to utilise all the benefits they are offering. Generally, the eligibility criteria for such policies are not that stringent as insurers try to help every individual out during emergencies. However, insurance aggregators pay heed to aspects like age, pre-existing medical conditions, etc., before approval, and it is advisable to go through the protocols beforehand. You should also check the maximum renewal age since some of these plans do not allow medical coverage for over 60-year-old individuals. 

  • Check tax benefits 

This is one of the key features of every insurance policy. Therefore, one needs to obtain clear information regarding the same. Generally, the tax deduction is available for your premium amount, and the amount claimed under your critical illness policy is completely exempt from tax. 

  • Understand the process of filing the claim

There are certain formalities and document requirements involved when you file a claim, and having a detailed idea regarding this process is necessary to save time during emergencies. Nevertheless, you can expect a hassle-free claiming process with Bajaj Allianz health insurance plans brought by Bajaj Finserv since they do not involve any third parties and offer prompt response to policyholders.  

  • Choose adequate cover size

Medical treatments for critical diseases tend to get quite expensive, which is why you should look for insurance policies that offer a high coverage amount. Even though these days, online health insurance aggregators are coming up with a host of benefits, only a few of them can be considered entirely reliable. You need to check their terms and conditions and look for an optimum cover size to meet the sizeable treatment costs. 

  • Ask for a waiting period 

You need to discuss this particular aspect with the insurance aggregator and get to know about the stipulated time under which your critical illness insurance policy is payable. In case of critical illnesses, the benefits shall be payable after 90 days of the commencement of the policy. Consequently, it is advisable to look for CL policies that come with a low waiting period. 

Looking at the stressful lifestyle, pollution, and other factors individuals are facing on a daily basis, it is fair to say that staying financially protected is imperative to tackle these health emergencies. And, while opting for a critical illness policy, one should keep the aforementioned points in mind in order to maximise its benefits and save themselves from financial troubles.

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Spot The Mistakes On Your Credit Report
Finanace

How To Spot The Mistakes On Your Credit Report?

by Siddiqui Raphiya
written by Siddiqui Raphiya

Credit bureaus like CIBIL™, Equifax, Experian and CRIF High Mark are the key agencies in India responsible for collecting individual data and generating credit reports and credit scores. The repayment data pertaining to individual loans or credit cards is provided to credit bureaus by the lenders and credit card providers, either monthly or quarterly. 

Though this entire credit score generating process is agile and transparent, still the credit bureau credit report could contain errors. Such errors could entail a low credit score impacting your chances of loan approvals or additional credit cards in India. 

Mistakes on your credit report could be due to various factors like inaccurate personal information, misprint, duplication of entries etc. It is, therefore, very important that you verify the credit reports once you have received them and immediately apply for the correction of mistakes on your credit report. This would ensure that your credit score is intact, improving your chances of securing loans or credit cards at the best possible rates. 

How can I find mistakes on my credit report?

Finding a mistake on a credit report may feel like an arduous task but it is actually not that difficult. Your credit report has information relevant to your personal, contact details, debt accounts, and enquiry details. The mistakes on your credit report could have been made either at the time of data submission or during the aggregation phase. 

One needs to understand the type of errors that could occur in a credit report influencing the report accuracy and hampering your credit score in the process. Understanding the errors would help us to raise the mistakes in the credit report with the concerned authority at the earliest.

CIBIL™, Equifax and other key credit bureaus have provisions available through which you can apply for rectification of mistakes in your credit report. 

Steps for Rectification of Mistakes in Credit Report

  • First, you would need to fill an online form with the credit bureau with details of the mistake. 
  • The credit bureau would verify the same and then check the same with the respective bank or credit provider. 
  • Common mistakes from lenders get rectified immediately. 
  • Mistakes due to fraud need elaborate procedures to be followed by the bank.
  • If financial institutions fail to act on your complaint, then the Banking Ombudsman can be approached.
  • 30 days is the time period to get your complaints resolved with banks working towards a resolution within 45 days of the complaint being first raised?
  • Resolved status is intimated via email.

After your mistakes are said to be rectified, check the same in the revised credit report received. At CreditMantri, the online loan credit comparison platform, you can now get your latest credit score for free generated within minutes.

Now that we’ve seen the steps to resolve the mistakes on your credit report, let’s check out the common mistakes. 

Common Mistakes on your Credit Report 

The most common errors in the credit report relate to  

Latest Balance not getting reflected in Credit Report

Your credit report may not reflect the latest payments made on your loan instalment or credit card dues. This would lead to a wrong balance reflecting in your credit report. Normally lenders and credit card providers are the main sourcing authorities who provide your credit information to the credit bureaus. Such credit reports are normally produced every month but the customers receive the credit report, after 45 days of application for such report. This time lag could result in your latest payments not being reflected in the credit report received, creating a mismatch.

Inaccurate Credit Limit 

At times, you would have got an upgrade on your credit card limit from your credit card provider. However, the credit card provider may have not informed the concerned credit bureau of the increased credit limit on your card. This implies that your old credit limit is only getting reflected in your credit report showing a higher high credit utilisation ratio. Such inaccurate information would ultimately impact your credit score.

Incorrect Personal Particulars

Errors could also occur in the credit report on account of incorrect personal details like name, address, date of birth or PAN number. If it is not done, it may so happen that your particulars could have got mixed up with some other person or even erroneous particulars could heavily impact your credit score. It is therefore imperative that customers verify their personal details at length ensuring their correctness always.

Ownership 

Customers should also verify the accuracy of their credit history reflecting in the credit report generated by the credit bureaus. They should ensure factual accuracy at all times. All financial details should only pertain to transactions undertaken or owned by them. Otherwise, a wrong credit score could be generated impacting their chances of getting loans or credit card approved. 

Duplicate accounts

Any multiple accounts registered with credit bureaus, in the names of customers should also be carefully verified. Having duplicate accounts could even lead to fraudulent transactions which could again impact your credit scores in a negative manner. You should also be aware of any of your family members using your credit card as any payment delay on that part could also lead to lowering your credit scores.

The above list of mistakes is not exhaustive. One should therefore carefully check their credit report for any types of mistakes.

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Finanace

Check These Things Before Applying For a Home Loan

by Kathe Lousis
written by Kathe Lousis

Gone are the days when home loans were a conventional financial instrument that provided money for house construction or purchase. Today, home loans come in various shapes and sizes. They are diverse, prompting the need for education and knowledge.

This article simplifies the apparently complex task of home loan selection. Read on to know things, such as documents required for a home loan, you should check before availing a loan.

Home Loan Interest Rate and Eligibility

Home loan interest rateis typically lower than other loans. A home loan’s interest rate depends on several factors, such as borrowers’ credit profile, income, age, nature of employment, relationship with the lender, house valuation, and market rates. Lenders prefer application from borrowers with a credit score above 750. However, you may still apply for a home loan if your credit score is below 750, albeit at a higher rate. Hence, before submitting the documents required for a home loan, you need to check and improve your eligibility for the loan.

Home Loan Amount

The loan amount of a home loan depends on your eligibility. Generally, lenders approve a loan amount of up to 90% of the house you wish to purchase or construct. However, the higher the loan amount, the higher the EMIs. If you want to keep your EMIs low, it is better to make a higher down payment. For example, if you make a 30% down payment, the loan amount will be 70% of the property value, and hence the EMIs will also be lower. Hence before submitting the documents required for a home loan, you should check the loan amount so that the EMI amount is within your limits.

Home Loan Repayment Term

The maximum home loan repayment term is generally thirty years. The longer the loan term, the lower the EMIs. However, when you select a long term, your credit score increases slowly, and you remain a debtor until the loan amount is repaid in full. Hence, before applying for a home loan and submitting the documents required, you should check your repayment capability and select a shorter term if you can afford the extra cost. A short term home loan not only lowers the interest ratesbut also enables you to shrug off the debtor tag earlier.

Home Loan Foreclosure Fees

Foreclosure or closing your loan before the term ends can be advantageous for a borrower. If you pay a lump sum over the EMI amount for settling the principal component of a home loan, it can reduce the subsequent EMIs and interest rate. However, your actual savings due to prepayment depends on the foreclosure fee your lender levies. If your lender has high foreclosure charges, the effective saving will come down. Hence, before handing over the documents required for a home loan to your lender, you need to check various charges, such as foreclosure fee, levied by the lender and select the lender offering the lowest fees.

Conclusion

While the tips mentioned above can help you select an appropriate home loan, it is ultimately the lender who decides your satisfaction with the loan. A home loan is more than the interest rate. The best lender is the one who gives industry-best interest rates and other benefits like less number of documents required for a home loan, flexible eligibility, simple application process, and long loan term.

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Finanace

Product Marketing With the Help of Influencers Leading to Success | True Facts

by jerrymorgan
written by jerrymorgan

From the past few years, the growth of influencer marketing is growing amongst fashion & beauty brands. Whether a local brand or a global one, want exclusive product marketing to drive high sales. The fashion houses collaborate with creators to launch their products. Social media influencers with an immense number of followers & engagement are working pretty well for the textile & beauty industry. 

Influencer marketing delivering high ROI, ensuring the success of companies. Brands are focusing on finding the best & suitable influencers to attract a broader audience. One gets the wide opportunity to create brand awareness & have more interaction with people through social media platforms. Influencer marketing is becoming a win-win situation for creators and brands. 

How Does the Process Work?

➤Involvement of Influencers in the Planning Phase of Product Creation

New product launch marketing must include influencers as they are the targeted voice. The brand should give them the freedom to organize the campaign or curating creative content to promote the product. You might have seen influencers launching cosmetics in unique ways- some have professional clicks, some throw the live videos, talking about the brands; well, there are endless strategies the creators have in their minds. Brands work like a team with influencers and keep them in the planning process, making them feel a sense of ownership over the launch. 

➤Work with the Existing Influencers Your Fans Already Trust

Some brands have a healthy relationship with the existing followers having a huge number of followers or fans. Many cosmetics companies have long-term contracts with influencers delivering productive results. While launching a new product line, brands prefer the existing creators instead of going to new influencers. Two reasons for doing it – firstly, the followers are well aware of the brand and open to new products. Secondly, save time to get in touch with new influencers. 

➤Allow Influencers Using Pre-Launch Strategies

Product launch is not a one day show. Before a movie comes into theatres, many teasers in parts are built to attract the public to watch the film. The trailer is aired to have more excitement amongst people. Similarly, in launching a new product- influencers show a glimpse of the product to have the audience’s attention. This leads to brand awareness. It’s not a final launch; it’s just a way of sharing information to their followers that something favorable is coming soon. This technique works remarkably in influencer marketing and has a high chance of success.

➤Reward Techniques for Followers During Pre-Launch

In the above pointer, we know the importance of pre-launch techniques. Brands make catchy discounts- many times in the name of influencers. For instance -Peter20. Many influencers are creating buzz for the new product before the launch date by offering promotional codes. This is an amazing way to reward their followers. They build trust & love with their followers, and brands get potential customers. Brands are focusing on finding the best & suitable influencers to attract a broader audience and in some cases to improve their stock prices.

Pre-launch promotions in favor of customers are helping companies to prosper in the long-run. Even influencers on Instagram run the contests by providing giveaways to the winners fulfilling the game rule. Therefore, a creative promoting style makes a difference and lets your brand stand out from the competitors. Influencer marketing is not fading in the coming years as social media continues to grow. Bloggers showing much interest in new product launches for the brands- all one needs to follow the right technique and a loyal influencer. It’s essential for entrepreneurs to accept advanced advertising techniques to sustain their businesses. Make sure to put efforts to approach new styles of marketing and be the king of the market!

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Finanace

Insurance Options for Retailers

by Pranesh Balaji
written by Pranesh Balaji

An insurance cover protects your business by providing financial compensation for losses incurred that are covered under your chosen insurance policies. Get your retail outlet protected by the right insurance cover options, and maintain your peace of mind as you grow your business.

As a retailer, you need to protect your investments. Your retail business can go from excelling to having to shut down in a matter of days without the right insurance coverage. Unexpected events such as fire, natural disasters, accidents, theft, cyberattacks, and more can leave your business vulnerable without insurance. For your retail business, there are three main kinds of insurance policies you need to look at:

  • Property insurance
  • Liability insurance
  • Workers’ compensation

Before you decide what kind of insurance suits your retail outlet’s needs, you need to thoroughly pore through what each insurance option provides.

What are the three main kinds of shop insurance you’ll need for your business?

The three broad categories that cover most of the insurance policies you’ll be hunting for your retail business include:

Property Insurance

Property insurance protects your brick and mortar building, as well as any products you may be selling. Damages to the building, either from an accident or a natural disaster, are covered under property insurance. Whether you own the building your business is in or have rented out the space, property insurance is a must.

Liability Insurance

If a customer or a third party faces any damage or injury due to your business operations or negligence, then they can sue you. For example, let’s say that you neglected to warn people that you had just gotten the floor of your shop polished. And as a result, someone trips and breaks their ankle. In this situation, they can sue you. Avoid paying for expensive Court costs, attorney fees, or settlement claims with liability insurance.

Workers’ Compensation

This kind of insurance protects your employees and your business by providing coverage for your employees in the event there is a disruption in their capacity to work.

Also Read about: Online Colleges

What are the insurance options available for retailers?

Now that you know what the three broad categories of insurance coverage that you should consider for your retail business are, let’s look at the different kinds of insurance options available to you. As a retailer you should check out these Shop Insurance packages.

1) Public Liability Insurance

Protects your business from being sued by a customer, a third party, or other people who have sued your business. This insurance covers incidents where the affected party suffered injury or property damage. The damage should be directly linked to negligence on your part while on duty or as a result of your business operations. The insurance covers the cost of employing an attorney, as well as compensation should you lose the Court case.

2) Product Liability Insurance

If your retail business sells any kind of product, then you need this insurance. It protects your business against claims by customers and third parties that using your products caused them harm. Please note that sometimes product liability insurance is grouped with public liability insurance as well, so always check with your insurance carrier.

3) Workers’ Compensation

Workers’ compensation is essential insurance coverage for anyone who has hired multiple employees to run their retail business. If something happens to your employee, such as he/she suffering from a personal injury due to work, then this insurance will cover their medical bills. The insurance also provides compensation if your employee sues you.

4) Machinery Breakdown Insurance

Technology is fallible, but that can invite huge financial losses for your retail business. If you run a grocery shop and your refrigerator breaks down, you could potentially lose a significant amount of your stock. Aside from your refrigerator, other essential electric equipment can also break down from time to time. Protect your machinery by getting machinery breakdown insurance. Then you’ll receive coverage should the insured machinery need to be repaired or replaced.

4) Business Interruption Insurance

A business interruption insurance lets you insure your retail business against a specific event ahead of time. This event can include events like fire, earthquake, or floods. If such an event interrupts your retail business, then you can receive compensation that helps you run your business operations.

You’ll also receive assistance as your business recovers. Additional coverages you can opt for to improve your chances of business recovery include stipulations that cover rent or wages until the business is back to normal.

5) Money and Theft Insurance

You never know what can happen to your money while you conduct your business. From theft to property damage, your money can be affected in various ways. But if you have money and theft insurance, you can protect your finances should the worst-case scenario happen.

It covers money that was stolen, damaged while in the shop, when being transported due to the business, or while the money was in professional custody.

Similar to money insurance, but not the same, is theft insurance. Theft Insurance protects your property, products, as well as your premises, should anything be stolen or damaged as a result of attempted theft.

5) Building Insurance and Glass Insurance

You need to protect the place where you run your business if you want to keep running your business there. Your building insurance can cover damages from various scenarios, such as fire, flood, earthquake, violence, storms, and other events. You can select the specific events you want your business to be safeguarded against.

Another policy that also protects your business premises is glass insurance. If your shop has large display cases, shopfront windows, glass signage, and more, then you’ll need to protect them in case they break. Glass insurance provides coverage in such situations, provided you’ve selected the appropriate policy.

6) Cyber Liability Insurance

In today’s world, your retail business is more at risk from cyber attacks than ever before. And some of the damages can lead to huge potential lawsuits, such as if a client’s personal information gets divulged. Viruses and malware can also be expensive to repair and cause you to lose substantial amounts of money.

Cyber liability insurance protects you from that by providing coverage for the costs associated with handling a cyber claim.

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