Friday, 26 April 2013

Insurance and its benefits ♥ ♥ ♥

Definition of 'Insurance'

A contract (policy) in which an individual or entity receives financial protection or reimbursement against losses from an insurance company. The company pools clients' risks to make payments more affordable for the insured.

explains 'Insurance'

When shopping around for an insurance policy, look for the best priced package that is right for you - prices can vary from one insurance company to the next. And make sure you know what you want. Some individuals, for example, prefer 24- hour claims service or face-to-face contact with an insurance representative. Also consider the claims settlement process, the amount of the deductible and the extent of the replacement coverage. Insurance companies and the policies they offer are not all the same, so think about more than just the price.

Definition of 'Auto Insurance'

A policy purchased by vehicle owners to mitigate costs associated with getting into an auto accident. Instead of paying out of pocket for auto accidents, people pay annual premiums to an auto insurance company; the company then pays all or most of the costs associated with an auto accident or other vehicle damage.

Buildings insurance (fire)

A buildings insurance covers damages caused to buildings and permanently installed objects. In the Canton of Zurich, as in most other cantons, the property fire risk insurance is compulsory. This insurance also includes damage caused by certain natural forces (e.g. flooding). In contrast, furnishings (chattels) and equipment (goods) are not covered. Coverage of these items needs a separate insurance (chattels).

Property insurance (chattels)

Destroyed or damaged business chattels or goods due to fire, water, theft (robbery and burglary) or glass breakage can pose a threat to your existence as an entrepreneur. This insurance is similar to a private household insurance and also covers damages to property of third parties, rented objects, leased objects or objects taken into care.

Technical insurances

Technical insurances can, for instance, be taken out for IT installations, technical installations (telephones), for machines or for their installation. The insurances cover the repair and replacement costs. These insurances are worthwhile supplements to property insurance (chattels) which does not always provide sufficient coverage and security in the technical field.  .

Transport insurance

Things can occasionally go wrong when transporting goods. A transport insurance protects from damages which goods can suffer during transport, e.g. through damage or loss.

Asset insurances :

Asset insurances primarily provide
coverage of assets. The most important asset insurances are:

a) Third party liability insurance for
motor vehicles .

Third party liability insurance is
compulsory for all motor vehicles (cars, motorbikes, commercial vehicles or
agricultural vehicles) used on public roads. Insurance covers damages caused with the vehicle to third parties. The premium for the third party liability insurance for motor vehicles depends, inter alia, on age of the driver, his/her driving experience and the type of vehicle. The insurance also works according to a bonus-malus system, meaning that the premium is reduced (bonus) in the event of accident- free driving and increased (malus)
following a damage claim.

b) Public / Professional liability

Anyone who inflicts harm on a third party, whether intentionally or due to carelessness, can be held liable. There are countless danger sources that can result from an entrepreneurial activity. Practically speaking, a distinction is made between three risk and danger areas:

1. facilities risks (e.g. construction defects)

2. operating risks (e.g environmental damages)

3. product risks (e.g. damages caused by faulty products)

The insurance company examines the claims, pays justified demands of claimants and rejects inflated or even unjustified claims. There are different public and professional liability insurances depending on the business sector. Medical doctors, architects, engineers, lawyers, notaries, fiduciaries, chartered accountants as well as their employees should on all accounts take out a professional liability insurance so as to be protected in the event of injury to a person or damage to property as a consequence of their professional activity.

c) Interruption of business

Production losses resulting from an
interruption of operations of a machine, of goods or when transporting goods as a consequence of an insured fire or water damage are not covered by the property insurance (chattels). An additional insurance (e.g. a machinery loss of profits insurance) needs to be taken out for this.

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