What Are The Coverage Of Business Insurance, And What Is Its Function?
Contracting insurance for businesses allows you to face the situation in several ways, such as having compensation for each day that cannot be opened, or obtaining a sum for the loss of profits declared in the insurance contract , and even in the face of cover certain fixed expenses.
Business insurance is one of the investments best used when it comes to guaranteeing the continuity of a business activity that always arises with a lot of time and effort. Among the main reasons that make it essential to contract insurance for businesses in any type of industrial, commercial, logistics or service activity, are the following
This is so because the replacement of raw materials, equipment, together with the loss of data, and facilities generate large disbursements that most likely cannot be met with immediate liquidity, unless there is the support and coverage of insurance. for business .
But within the possible risks that a business may suffer, in addition to material losses, there is a liability derived from the exercise of each activity, which affects the owners, and even those who develop independent professions, who can be protected with insurance for companies .
Finally, it is important to reflect on other types of losses such as those of income, and penalties that you may suffer from your clients, when there are not enough resources to face the partial or total stoppage of the activity as a result of a Sinister.
Once we have reviewed some of the many reasons why business insurance is so important , let’s see what coverage is essential when hiring these products.
Essential coverage in business insurance contracts
In addition to the coverage against meteorological phenomena, among the basic coverage that should be included in any business multi-risk insurance are:
This coverage guarantees the repair or replacement of insured property damaged or destroyed in a fire, or derived from the presence of fire in the insured facilities, including extinction and salvage expenses.
With this type of insurance coverage for businesses , the repair and replacement of elements affected by the accidental leakage of water in the facilities themselves, or in adjoining properties, as well as the claim in the event that the loss is produced by the latter are guaranteed. .
It covers damage caused by overvoltages in the electrical network in its own installations, both fixed and in equipment and machinery, guaranteeing the repair or replacement of the equipment as appropriate.
Theft and plunder
It is an essential coverage within a business multi-risk insurance , and it serves both to repair the damage and damage caused in the search for loot, as well as to guarantee compensation for what has disappeared.
Within the coverage of business insurance there is also an employee infidelity insurance , in such a way that if a worker misappropriates documents, merchandise or cash, the loss is also reduced with financial compensation that will depend on the clauses and conditions of each contract.
In addition, theft usually contemplates that if a robbery is suffered outside the facilities when the company’s funds are being transported, that loss is fully or partially covered with compensation.
The business development has a number of potential risks that can be found even the best professional, «because no one is free to have a bad day and make a mistake that harms third parties directly more or less serious» and to whose consequences will have to respond financially or even judicially.
For this reason, within business insurance , there are different types of liability insurance:
First of all, we find exploitation civil liability insurance , designed to respond to third parties against incidents and non-contractual claims, that is, not related to breaches of contracts, or provision of services themselves that may be presented against the insured business.
For example, food poisoning occurs in a restaurant by involuntarily serving spoiled products, and affected customers file a lawsuit.
There are also employer civil liability insurance , to respond to accidents and mishaps that business employees may suffer in their work activity and whose responsibility is attributable to the company, such as in the case of deterioration or breakdown in the facilities, with consequences of injury or death of a worker.
Leasehold civil liability , with which you can respond to the claims of the owner of the industrial premises, warehouse or workshop in which an activity is carried out as a tenant.
It is another important insurance coverage for businesses , since with it the interests of the insured company can be supported with legal defense services against administrative files, claims to suppliers, and other contingencies of a legal nature.
This service usually also includes the possibility of making inquiries through telephone legal advice .
Once you already have basic guarantees, business insurance allows you to expand the possibilities of risks and guarantees depending on your needs.
Other coverage and guarantees of insurance for companies and businesses
Guarantee of a capital for loss of profits
It is used to receive a daily amount, or a lump sum in the event that the business facilities are temporarily unusable due to an accident covered by insurance, such as in the event of a fire or explosion.
Machinery breakdown insurance
It is an additional coverage to adapt business insurance to the needs of the specific activity. Its purpose is to expand the covered mishaps of the equipment and machinery to include the breakdown of these devices and generally contemplate a certain franchise from which the cost of repairs begins to be covered.
Deterioration of refrigerated goods
It is a very important coverage within insurance for businesses in some sectors such as pharmaceuticals, laboratories or the food industry, because it guarantees financial compensation in the event that, due to a failure in the refrigeration system, goods stored in refrigerators are damaged.
24 hour assistance
With this service, various technicians can be requested to attend to emergencies, repair damage due to a covered claim or request specific services in facilities with better conditions in terms of labor and travel costs.
Breakage of windows, glass, mirrors and sanitary ware
It is a guarantee to cover breakage of glass, mirrors, sanitary ware, and even stone and marble coatings.
In addition to all the coverages that a business multi-risk insurance can include , in many sectors of activity, it is mandatory for companies to take out life and disability insurance for employees , due to requirements in collective agreements.