Types of insurance for businesses, should you have any?

The risks to which businesses are exposed are incredible, even if they are of small size. It is therefore often surprising that it is the entrepreneurs themselves who, due to their great occupations, neglect the protection of their heritage. It is well known that most companies need some type of coverage against possible accidents or threats, including the need to contract more than one type of insurance, depending on the nature or sector where the organization operates.

In certain businesses insurance is compulsory and in others, although voluntary, it is common sense to dispose of them, since the consequences arising from the contingencies they cover can be very serious if they are not available, having to be assumed By the company itself, with strong civil and possibly even criminal consequences.

Examples:

  • Professionals, such as doctors and lawyers, should normally have negligence insurance.
  • Companies operating vehicles must have motor vehicle insurance.
  • Companies that also need property insurance to protect goods against things such as fires or natural disasters.

Types of insurance for companies

  • Accident insurance for its workers: it  is a personal insurance to the staff that is fixed in the different collective agreements, most of the collective agreements oblige the companies to contract this insurance. These insurance policies usually cover in case of non-work accident or death due to natural causes.
  • Liability insurance: it  is the insurance that will respond of the civil damages that provoquemos with our company in the development of the mercantile or professional activity. Consider, for example, an accident that has a customer in our premises or in a professional work poorly done in the case of lawyers, economists or advisers.

In certain cases it is not mandatory, but it is one of the most advisable insurance and it is suggested to always hire. For example, if in the development of my activity we have committed some kind of incidence, whether for services or goods, the economic cost of repairing that damage must be borne directly and this can result in a very high economic problem with Consequences of serious financial problems.

  • Multi-risk insurance: from the moment the activity is carried out in an establishment, office, industrial warehouse, etc., it is advisable to contract insurance that can cover the damages of the continent, local and its structure and the contents, furniture, machinery , Computer equipment, etc. This type of insurance, in addition to the replacement of damages that may be suffered, also help in the claim of damages caused by third parties.

Some keys to cheapening insurance

In this sense, it is a very important task to select the right and affordable insurance company with the coverage we need in our business, just like we do with the rest of the providers.

It is necessary to evaluate in each company and casuistry if it is convenient to have more than one insurer for all or different policies. In general, if we have several insurance, such as multi-risk (premises or cars), civil liability, etc., pact the entire insurance portfolio with the same company usually gives better overall cost than having insurance in each company. Here also comes banks that can agree with them better conditions in loans, mortgages, leasing, in exchange for insurance contracting.

We should not stop thinking about the option of reinsurance, since in many cases coverages overlap. In simple terms, reinsurance could be defined as “insurance insurance”. This is a contract signed by the insurance company that you have contracted with another company (in this case, would be the reinsurer), to assume part (or all) of the cost of a possible loss.

For example, in the case of commercial premises, which is not just a building, ie inside a building, the continent is already included in the insurance policy of the building, and despite this is included in the multi-risk policy Of the company. Even if we insure that continent twice, we will only be entitled to a charge or restitution in case of loss.

Following a few simple rules, asking for prior quotes, negotiating our premiums and conditions can mean savings in the cost of our insurance higher than 40% of premiums paid as a basis. Rational saving is a fundamental pillar within the company and the insurance chapter is one of the best to take action.

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