Business insurance helps companies to stabilize and grow.
Everyone should know it at least in Germany. Regardless of whether state-subsidized or whether privately and personally paid; in Germany everyone has it, and it is the most important basis for ensuring one's survival.
We are of course talking about insurance. But what exactly is meant by this term and what does it mean?
Insurance in general is like a collective assumption of costs.
You have to imagine that you pay an amount of money, which is different for different people to an insurer, who is then liable in the event of damage and takes over the costs.
Precisely for the reason that the event really does happen, that there is a claim for the insured. the insurance company has enough money to keep the cost of the insurance premiums as low as possible for the consumer.
So if you want to make this clear with an example and assume that a person is buying a state-of-the-art new car that is worth around 50,000 euros, this person can pay for insurance for the car. so in the event of damage, if For example, the car is involved in an accident, the insurance company will cover the sum of the damage to the car.
So if you assume, for example, that the probability the car will get a total write-off is 0.1 percent, i.e. one in 1000, then you will have to pay the 0.1 percent proportionately to the insurance company, which in this case is one Amount of 50 euros per month to the insurance company.
In addition, you also pay a security surcharge, which in this case would add another 10 euros per month, for example. In total, you would then be at a monthly price of 60 euros if you wanted to insure a vehicle worth 50,000 euros.
However, the amount to be paid varies from person to person, depending on the group of people, the age, and the experience of the driver.
How and why to insure business.
Insurance will help protect your business from disaster, from employee mistakes to natural disasters. We will tell you what insurance companies can offer entrepreneurs.
Why insure your business.
Starting a business inevitably entails risks. Entrepreneurs, especially beginners, cannot always anticipate their consequences.
All risks can be divided into two groups: external and internal. External risks have nothing to do with the company's business processes. These include:
- risks of increased competition;
- changes in the economic situation;
- man-made disasters;
- natural disasters;
- socio-political factors;
- changes in legislation.
Internal risks are directly related to the activities of the organization, so the entrepreneur can prevent some of them. These include:
- production risks (breakdown of equipment and the resulting downtime);
- commercial risks (loss or damage to goods during transportation);
- financial risks (failure to fulfill obligations to banks, for example, inability to repay a loan);
- human factor (erroneous decisions of employees).
Business insurance against risks will help minimize losses. Under the terms of the contract, upon the occurrence of an insured event, the insurer will undertake the obligation to compensate for the damage.
How to choose insurance services.
To understand which insurance products are suitable for a company, you need to answer three questions:
- What are the risks of the business?
- What is the probability of each of them occurring?
- What are the consequences and what costs will it entail?
After analyzing the situation, contact the representative of the insurer with the summary of the organization. The advantages of modern insurance are in a huge variety of products, among which there are many chances to find the best one.
Small business insurance package.
Insurance of individuals and legal entities in Russia is regulated by the Civil Code and the Law on the Organization of Insurance Business. Insurance companies offer standard packages for small businesses. You can choose one or ask the insurer to make a personal offer.
Typically, a basic business insurance policy includes 3 products. Let's take a closer look at each of them.
- Insurance case. The property of the enterprise was damaged.
Compensation. Full or partial.
Typically, managers insure property against fire, flooding, natural disasters and unlawful actions of third parties. A legal entity or an individual entrepreneur can insure any property, including:
- a car as well as any ground (including special equipment), sea, railway and air transport;
- the property;
- goods in circulation;
- cargo during transportation;
- agricultural products.
Third party liability insurance.
Liability insurance for failure to fulfill obligations under the contract.
- Insurance case. The company violates obligations to third parties (customers or banks).
The insurance company will incur the penalty.
Professional liability insurance.
- Insurance case. An employee of the company made a mistake during work that caused damage to the business.
Business risk insurance.
- Insurance case. Loss of resources or lack of income in comparison with the forecast.
As a rule, business risks cannot be insured without prior insurance of real estate and equipment. Only the entrepreneur himself can receive payment under such an agreement; there are no beneficiaries under it.
The standard package for small businesses includes business interruption insurance: the insurance will reimburse losses if the company is unable to work for a certain time. In addition, other business risks can also be insured.
For example, there is insurance against bankruptcy or breach of contractual obligations by the counterparty.
The standard package for small businesses includes business interruption insurance: the insurance will reimburse losses if the company is unable to work for a certain time. In addition, other business risks can also be insured. For example, there is insurance against bankruptcy or breach of contractual obligations by the counterparty.
Types of insurance.
The term life insurance covers a large number of different types of insurance. These can be categorized according to different criteria, but categorization according to the insured event is common.
Life insurance is understood to mean life insurance which is paid out when the policyholder dies. The sum insured is usually paid out to the surviving spouse or children.
Endowment insurance is the counterpart to life insurance. In this case, the sum insured is paid out when the policyholder reaches a certain age. Thus, endowment insurance represents a type of old-age provision.
The full sum of the endowment insurance is not always paid out when the specified age is reached. A pension payment that starts on the specified date is also common.
The occupational disability insurance protects a policyholder in the event of occupational disability. In this case, the policyholder receives either a fixed sum or a pension, in some cases both.
Dowry insurance is a life insurance policy that is paid out to the policyholder in the event of the policyholder's wedding.
Similar to dowry insurance, birth insurance is a life insurance policy that is paid out in the event of birth. There are birth insurances which only cover the first birth and others that cover the birth of every child.
Health insurance is an insurance that covers the costs incurred in the event of illness. Health insurance is organized differently in different countries. In some countries, there is basic state insurance, while in other countries insurance is compulsory.
Private health insurance.
A private health insurance is an insurance that offers insurance coverage in the event of illness in countries without state basic insurance. In addition, most private health insurances also offer additional insurance that goes beyond the scope of basic insurance.
Dread Disease Insurance.
Dread Disease Insurance, the name roughly stands for insurance against dreaded diseases, is health insurance that pays out benefits when you fall ill with a list of predefined diseases. These are usually serious illnesses such as cancer or multiple sclerosis.
Property insurance includes household contents insurance, building insurance, commercial insurance, and hail damage insurance for agricultural plantations. In general, this category includes all insurances in which objects are insured.
The umbrella term of liability insurance refers to all insurance policies that cover the financial damage caused by the activities of the insured person. Typical examples of this are motor vehicle liability insurance, private liability insurance, animal owner liability insurance, or business liability insurance.
Business interruption insurance.
Business interruption insurance protects a company from the financial losses that result from a forced loss of business activity.
Accident insurance pays the policyholder the costs incurred as a result of a self-inflicted accident.
Transport insurance protects a policyholder, usually a company, from the financial losses caused by damage to goods during transport.
Kidnapping and ransom insurance.
Kidnapping and ransom insurance provides protection in the event of a kidnapping. On the one hand, such insurance covers the costs that arise from paying a ransom, and on the other hand, such insurance usually also has negotiation specialists who can help with the release of hostages. In order not to increase ransom demands, it is better if the insured person does not know that they are insured.
Travel insurance is a type of insurance that can be broken down into many sub-categories. For example, travel cancellation insurance that pays in the event of a cancellation is possible, travel cancellation insurance that covers the costs of cancellation or travel health insurance that covers medical costs on the trip.
Occupational disability insurance pays the insured person a one-off payment or a pension if the insured person is unable to work due to an accident or illness.
Long-term care insurance works in the same way as disability insurance but pays if the policyholder is in need of care due to an accident or illness.
Unemployment insurance is insurance that pays a monthly amount in the event of unemployment. Most countries have state unemployment insurance, but private unemployment insurance is also available.
Insurance for a casino.
Like any other business, a casino, whether in the real world or on the Internet, requires a variety of insurance. In this way, it can protect itself against claims from customers and employees, but also against loss of earnings due to unforeseen events.
Health and accident insurance must be taken out for casino staff. They pay the medical costs incurred in the event of illness or accident. While accident insurance is compulsory, health insurance is a voluntary service provided by the employer. In most cases, however, it is worthwhile for the employer to take out such insurance, as it means fewer sick leave. Employers who asked themselves the question: “ Which online casino should you choose? “Choose a casino that offers you health insurance.
A number of different types of liability insurance should be taken out for the casino itself. The most important of these is public liability, which protects the casino against claims from customers, employees, visitors, and suppliers. Thus, all damage to people or property for which the casino can be held responsible is covered.
It is also advisable to take out financial liability for a casino, as casinos are often dealing with large sums of money. This covers financial losses that may arise when dealing with monetary values. Property insurance is also a good investment for a real casino as it protects against damage to the casino even in the event of fire, theft or storms. This insurance is less useful for an online casino because it has few physical goods with the exception of the server.
Business interruption insurance is recommended for both a real casino and an online casino. This covers the losses that arise when the operation is not possible, for example, due to a technical problem. Last but not least, legal protection insurance can also be worthwhile for a casino. This covers the costs of legal disputes with customers, employees or other persons.
Benefits of insurance for companies.
As for private individuals, insurance offers companies a number of advantages that are not immediately apparent.
Accident insurance for employees, which is compulsory in the Federal Republic of Germany, covers the costs that arise from an accident of an employee. In this way, it offers an advantage both for the employee, who is financially covered in such a case, but also for the company, for which no further costs are incurred in the event of an accident and no claims for damages.
Professional liability insurance protects a company from claims for damages for financial losses caused by its services. Thus, professional liability insurance is particularly interesting for doctors, lawyers or tax consultants, as it offers these professional groups the greatest advantage. But also advisory professions such as consultants or real estate agents can be well served with professional liability insurance.
Public liability always offers an advantage if the activities of a company or its employees cause damage to customers, employees, visitors or suppliers. This can be personal, property or financial loss. In this case, the public liability insurance covers the arising claims for damages, which eliminates this financial risk for the company.
Product liability insurance offers an advantage to all companies that manufacture and sell a product. If this product causes damage, product liability assumes the resulting claims for damages.
Legal protection insurance.
As for private individuals, legal protection insurance also offers an advantage for companies, because legal disputes can also represent a considerable financial risk for companies. Legal protection insurance can be used by a company to defend itself against legal claims but also to claim its own rights. Many companies have lost profits because the company itself was financially unable to sue a competitor who violated its rights.