Insurance that covers the company against loss caused by damage to the property and structure. In many policies, additional coverages can be added as part of the policy, for example: loss of profits, third party, employer’s liability, electronic equipment and more. This is basic insurance that must be purchased at the start of the activity.
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- The aforementioned policy is made up of articles. The insured can purchase the chapters he wants to be covered by. The basic policy that covers loss caused to the property. It basically covers only damages caused by lightning or fire. You can find policies based on all risks that actually cover any damage caused as a result of a sudden and unexpected event, with the exception of what is expressly excluded in the policy.
- If you wish to also purchase coverage for loss of profits, you are obligated to purchase the basic coverage for property damage under the same policy or with the same insurance company that has the basic coverage for the property.
- The policy basically does not cover natural damages such as: earthquake, storm and cloud break, snow, hail and flood. The policy can be extended to also cover natural damage. In any case, even if there is a suitable extension, there will usually be no coverage for natural damage (with the exception of an earthquake) if the insured property is under the roof of the sky.
- The payment for damage to property will be based on the establishment value, i.e. value as new, provided that the insured uses the funds to repurchase the property. If not, the payment will be on an indemnity basis.
- The policy is subject to underinsurance and overinsurance. That is, if the insured property was valued at less than its true value to the insured, reduced insurance benefits will be paid relatively. If the purchased insurance amount is higher than the real value in an insurance case, the insured will be paid the real value.
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- As mentioned, the policy can be expanded to also include third party coverage – this is a basic liability policy that covers the insured for claims by third parties resulting from bodily or property damage caused to them due to the insured’s negligence. Also, the policy can be expanded to include employer liability coverage that covers the employer for employee claims for bodily injury caused to them due to the employer’s negligence. The employer’s liability policy serves as a layer above the amounts the employee is entitled to from National Insurance. These are essentially basic coverages that must be added to the policy.
- A residual cover can be added for electronic equipment. So that the electronic equipment will have its own insurance amount separate from the insurance amount for the entire property. The coverage for electronic equipment also provides coverage for data recovery expenses.
- In the policy there are exceptions that can be canceled such as said natural damage and damage due to a terrorist incident.
- There are insurance companies where the policy can also be extended to third party claims due to a cyber incident (for more see cyber insurance).
- It is important to examine the insurance amounts before purchasing the insurance and its suitability to the risks inherent in the business.