What types of insurance compulsory for business? We will discuss this topic and we also know that what is insurance and why it is important for your business? Insurance is an obstacle against the occurrence of unexpected events. Insurance does not only help you reduce the risk, but provides financial cushions against the opposite financial burdens. Under certain rules of the commissions, certain insurances like motor insurance and public liability insurance have been made. In all over the world insurance is the best way to protect business and other property. What types of insurance compulsory for business? you know. If your answer is no, please read carefully and try to understand this article.
List of 6 Best Types of Insurance Compulsory for Business
#1. Property Insurance for Your Business
Property insurance is the most important for a business Because the property is called a business life. If we lost our property, then our company or business will be must closed. So, it is the best types of insurance compulsory for business and success your small business. Direct loss, physical destruction or material damage that occurs unexpectedly and suddenly to movable and immovable property insured within the properties determined in the Particular Conditions as a direct consequence of any accidental event whose cause is not expressly excluded in the text of the General Conditions of the Multi-Peril Policy. Property insurance is must need for a business. Some benefits of property insurance, such as…
- Availability of limits among the highest in the industry.
- The Multi-Peril policy is adapted to different business classes, regardless of the insurable amount.
- Subscription, engineering, control of losses and services in claims provided by specialists located at national and global level.
- Because it is a multiline, administrative management is simplified.
- Technical advice and excellence in the service to our clients.
- Joint Client-AIG effort to continuously improve risk.
- Financial strength.
- Subscription of Programs for Multinational Accounts
- Differentiated rate according to the business line. What types of insurance compulsory for business? you know. If your answer is no, please read carefully and try to understand this article.
#2. Workers’ Compensation Insurance
Workers Compensation insurance is the best way to success your small business. Take care of your employees with Workers’ Compensation Insurance. Workers’ compensation insurance protects key players on your team: your employees. You count on them to offer the service, knowledge, and experience you need to get your business to the next level. They expect you to take care of them if something unexpected happens. We can help you find the compensation coverage for workers that best suits your company and we recommend some ways to improve job security, control losses and reduce the costs of claims. And the most important thing is that it protects those who work for you. Workers ‘compensation insurance, also known as a workers’ compensation insurance company, can help if:
- Pay for the medical treatment of an injured employee
- Replace part of the lost salary, if an injury related to employment forces the employee to be absent
- Protect your business and your assets.
#3. Product Liability Insurance for Business
In the Civil Liability branch, one of the hedges that have taken important boom in the last years is the Civil Liability for Products. As its name indicates, it protects the insured for damages caused by third parties exclusively for the product manufactured by him, distributed and/or marketed. The guarantee of coverage also covers those products that, even when manufactured by other persons other than the Insured, by virtue of outsourcing processes, it is the latter who distribute and market with your brand and license.
Obviously, this coverage will be effective to the extent that in the manufacture of the product concerned, the appropriate standards have been reasonably respected, and should be counted with all authorizations, permits, and ratings required by the government authority according to the type of product (example: food, medicines, etc.). In relation to the risks included and the risks excluded, some of the aspects of this coverage, which we will try to clarify. What types of insurance compulsory for business? you know. If your answer is no, please read carefully and try to understand this article.
In the first place, the loss is configured from the occurrence of a specific damage to a third, that is when the product has already been delivered and/or launched on the market, consumers’ hands and used by them. Sinister is not configured if the fault is detected before the product has been sold and therefore “rescued” on time from the market. It is convenient to stop at this point, in order to analyze an important aspect:
It is essential that those companies exposed to this type of risk, have designed an adequate strategy of withdrawal of products from the market, which allows it to act immediately and effectively before an emergency of this type. It should be clarified that the expenses that the company demands the withdrawal of the product of the market, in general, are not covered by the coverage of Civil Liability Product. Nor will the Insured be protected by this coverage, if the failure of the product is due to any of the following causes.
# 4. Vehicle Insurance for Business
What types of insurance compulsory for business? you know. If your answer is no, please read carefully and try to understand this article. Vehicle insurance is the most important for your small business. Vehicle insurance is the best types of insurance compulsory for business for success. Having your own car and driving it is a real privilege, but its maintenance and care should not be minor. Not only is it enough to check the condition of the vehicle: brakes, oil, the air in the tires, etc. It is also necessary to protect it against events that get out of hands, such as a traffic accident, theft or a natural disaster. A vehicle insurance is the best way to be forewarned and calm. This type of insurance, apart from compensating for the economic damages arising from any loss, also has other coverage and benefits. Vehicle insurance gives you some benefits, such as … Civil Liability Insurance: Covers damages that may be caused by third parties in a traffic accident. Andean Pact Coverage: Grants coverage to vehicles in Ecuador, Colombia, and Peru. Loss of profits: This coverage applies to vehicles that fulfill work functions and covers the losses that are generated due to not being able to use the vehicle until it is repaired.
- Medical expenses and burial for occupants of the car
- Mechanical Assistance for breakdown or loss.
- Legal advice in case of the traffic accident.
- Do not think it over, secure your car, Aon will help you get the best conditions and benefits that best suit your needs and budget.
# 5. Business Interruption Insurance
What types of insurance compulsory for business? you know. If your answer is no, please read carefully and try to understand this article. A business that needs to close its doors completely while repairs are made in the premises, whether due to a natural disaster or accident caused by human error, in a short time it can lose its clientele in the hands of the competition. Therefore, a rapid recovery of normal business activities after an accident is essential. There the great importance of insurance against business interruption insurance (Business Interruption).
The price of a policy will be linked to the risks that facilities have of suffering the effects of a fire or other hazards. When all other factors are the same, it is possible that the price of a restaurant insurance is higher than any office, for example, a real estate office, because it can be much more exposed to fire. In addition, in this example, we must consider that if necessary, an official business will be able to move temporarily and operate from another location with greater ease than a restaurant. There are several types of business interruption insurance. You can acquire one, all or the combination that makes the most sense for your business. Here are the most common.
Coverage of business income (Business Income): Compensate business owners for the loss of income if the company needs to vacate their facilities due to damage suffered by a disaster covered under the Business Owner’s Insurance Policy. The business income coverage replenishes the profits that this would have generated, based on the financial statements, if the disaster had not occurred. The policy also includes coverage of operating expenses such as payments for contracted services – for example, electric service – whose bills continue to arrive even if the business is temporarily paralyzed.
Review your profit and loss statements and financial reports with your accountant to determine your annual profit (total revenues minus total expenses incurred for the year). In addition, you should have a general idea of how much your company’s income is (and therefore, how much you would be losing if you cannot operate) in a typical year. Acquire sufficient insurance protection that allows you to cover at least that amount of annual profit.
# Types of insurance compulsory for a business video tutorial
Coverage of extra expenses to generate business income (Extra Income Coverage): It will reimburse extra or additional expenses that the business has to incur above the typical and normal operating expenses, to avoid having to close its doors to the public or its clients, during the period of restoration of the facilities. To know the amount of coverage you will need, you must obtain an appraisal of the facilities where you operate, as well as a detailed inventory of their contents, including inventories, machinery and office equipment.
Contingent Business Interruption Insurance: Provides protection to the business’s income in situations where damages have occurred in the facilities of its suppliers or to those who provide them with materials or products, instead of physical damage occurred in the insured’s facilities. Today, companies depend intrinsically on a chain of suppliers and are also part of that chain to sell their products and services. What would happen to your business if a major supplier of your company suffers significant damages and cannot deliver materials, products or services?
Make sure you can determine how much of your profit or income would stop coming in if your company could not produce your products or services because your main supplier fails to deliver materials, or your main customer is unable to receive deliveries of your products. Insurance (or Coverage) of the Chain of Production and Distribution (Supply Chain Insurance): Coverage “against all risks” (all risks) of business interruption. This coverage is limited only to those damages that physically affect the facilities of suppliers, distributors or customers and it is proposed to cover those damages that are beyond the control of the insured.
This type of insurance offers protection against situations that interrupt the business affecting both physically and logistically. Insurance for requirements of local laws and ordinances (Ordinance or Law): Provides coverage to reconstruct and repair buildings or facilities so that they comply with the changes and implementations of building codes required by local laws and ordinances.
# 6. Employee Theft or other Causes Insurance
What types of insurance compulsory for business? you know. If your answer is no, please read carefully and try to understand this article. It is an insurance that will indemnify the Insured for the economic losses that he suffers as a result of a dishonest act by one of his employees. The risk covered is constituted by the “pecuniary damage suffered only by theft, theft, swindling or fraud, committed by the employees indicated in the General Conditions of the policy”, provided that the act is carried out within the territory of the Argentine Republic, during the validity of the policy, and that the crime is discovered and reported to the insurer at the latest within one year from the date of expiration of the policy, or the cessation of the functions of the employee author of the act, if this circumstance was prior to the aforementioned expiration.
Contest of criminal acts. In the event of the concurrence of successive criminal acts committed by a same responsible, the policy distinguishes if they were committed during the validity of the same policy, or during the validity of two successive. In the first case, it establishes that such events will be considered as the same event for the purposes of compensation; and in the second case, it determines that the insurer will only indemnify up to the sum insured by the subsequent policy, during which time the criminal acts committed by the same responsible party have been discovered the coverage of an immediate previous policy and of the latter.