Insurance Cover

Why have insurance cover? Well for many reasons and most of them have to do with being able to pay for the losses that we may incur. In that way we are protected from risk for a premium and that premium will depend on the frequency and severity of the event. In order to be insurable, the risk insured against must meet certain characteristics in order to be an insurable risk which are:

  1. The insurer must be able to charge a high enough premium to cover not only claims expenses, but also the insurer’s expenses.
  2. The nature of the loss must be measurable financially – that is, there should no room for argument as to whether or not payment is due.

The basic purpose of insurance therefore is to anticipate major losses that could financially cripple your future.  There are three basic procedures for determining your insurance needs – they are:

  1. to eliminate or reduce your risk by properly managing maintenance, repair and safety programs;
  2. to assume the risk yourself by paying small losses and buying high deductibles; and
  3. to transfer the risk by buying the proper amounts of insurance tailored to your specific needs.

A small business cannot operate without car nsurance. Insurance allows owners to minimize risk of loss from circumstances beyond their control. Firstly, you should identify the risks of the business that need to be covered and determine what the biggest amount of loss would possibly be.

Adequate insurance should cover your property against all risk of physical loss, including fire; volcanic action; smoke; sprinkler leakage; sinkhole collapse; explosion; vandalism; riot or civil commotion; lightning; windstorm or hail; aircraft or vehicles; glass breakage; damage from falling objects on the building exterior; damage to building walls or roof from the weight of snow, ice, or sleet; water damage caused by accidental discharge or leakage from a plumbing, heating, or air-conditioning