What sort of risks should you insure your company?
Insurance is acts as a shield for you business company. This is the question on everyone's mind before the start to run up business. Do I really need protection? Answer is YES! it is. Life is full of surprises we don’t know what happened next day or not even in next minute. Some bad or may be some good. We have to be prepared ourselves and our business for the worst scenarios. Many times, it is necessary to take certain risks to get ahead. This short business insurance for dummies information is to understand how you could avoid too many risks for your company by insuring it. There are two types of risks to which your company is exposed:
- Personal: accidents at work, staff illnesses.
- Property: Damages or losses due to accidents (fires, earthquakes, theft, breakdowns) that affect the infrastructure and machinery of your company.
Health Insurance: The law states that the company must insure its workers. There are many companies in Peru that complement this benefit with private health insurance, better known as Health Provider Entities.
Life Insurance: Peruvian Law indicates that all companies must contract with group life insurance for all their personnel who have more than 4 years working in the company, If the company sees it as convenient, it can insure all personnel who have more than three months of service in the company. It is optional.
There is a lot type of business insurance that provides you coverage according to your needs. The most frequent coverage’s are shown below, although there are others that are relevant to specific lines of business.
- Accident Insurance: You can insure your company against damage caused by fire , earthquake, vandalism, terrorism, strikes, civil commotion, rain and flood, vehicle impact and water damage among others.
- Policy against theft: You can insure your companies against the theft of goods such as fixed assets, computer equipment and money.
- Transport policies: You can insure the damages that your merchandise may suffer during the air, land, sea or river journey. This insurance is used for both the export and import of products.
- Vehicle policy: You can insure your company vehicles and / or their accessories as a result of a collision, rollover, fire, and theft, political and natural risks. Additionally, it covers civil liability against third parties and occupants according to the policy.
- Civil liability policy: You can insure against personal and material damage caused by an accident produced as a direct result of the activities or businesses that the insured is engaged in, and for which the insured is civilly responsible. Usually these insurances have a limit.
Professional liability covers the costs of plant, structural, personal, property and financial damage and defends against unfounded claims from third parties. It also covers claims from legal liability for defective software for process controls as well as damage, destruction or loss of customer dossiers.