Coprorate Risks Insurance – FAQ
What should the contemporary businessman know about Insurance?
Insurance in general practice costs a little. Is a small investment that contributes to the sustainability and competitiveness of a Company.
Quality, integrity and completeness of coverage of the insurance terms and conditions of covering business risks must be the main concern. Not just a "cheap" insurance.
What is included in the Corporate risks insurance?
Basically coverage of Property against fire & other named perils extended for Business Interruption (Loss of Profit). However, recent developments impose the need for insurance coverage of the responsibilities associated with the nature of the company and its activities.
What to look for in a basic Property Insurance?
To be careful about under-insurance! At least every three or even two years, the Insured in collaboration with his Insurance Consultant must adjust /update the sums insured in order to approach the actual replacement values. In case of special substantial changes to the data of the company (expansions, mergers, etc.) services from a Surveyor /Valuer should be needed.
What does “under-insurance” means?
In each Insurance Policy is appeared the maximum indemnity limit that the insurance company can provide.
In case of an eventual loss, “under-insurance” occurs when the amount for which the property is insured, is much less than the value of such property. In such a case, according to the insurance practice and the law, a proportionate indemnity will apply. Respective amount coupled with the amount of Deductible would mean a serious problem for the Insured company.
In the broadest sense "under-insurance” can be also seen as Liability Insurance with very low / inadequate indemnity limits (it is usual to have insurance with indemnity limits for bodily injury / death amounts less than 100.000 € / person).
Also, "under-insurance” can be considered a Policy with very restrictive and sometimes "abusive" special terms
Who is liable in case of "under-insurance?
Basically, the intermediary Broker, Agent or Insurance Consultant. His professional liability is to advise properly and wisely the Insured Client and to protect him from indemnity in case of a damage or loss.
How corporate business insurance could be implemented?
Like any other insurance. With the completion of the appropriate Application Form and submission of all necessary information. Obviously, the contribution of a specialist insurance Broker / Consultant is needed. The latter should have a valid and adequate Professional Indemnity cover for errors or omissions that may harm his Client. Moreover, that is able to:
- provide accurate information about risks and their coverage
- negotiate insurance terms and conditions
- to effectively settle eventual loss or indemnity claims.
