The owners of large industrial companies or small private enterprises always take care of the safety and conservation of all property. However, regardless of the established control and constant updating of the base, accidents, catastrophes, natural disasters occur, which sometimes cause catastrophic damage to buildings, structures, equipment. Therefore, business owners are thinking about the need to protect themselves from possible losses. To do this, managers conclude enterprise property insurance contracts with insurance companies.
What property is insured?
It should be understood that not every property object can be insured. According to the current rules of property insurance of enterprises, which are almost identical for insurance companies, there is a clearly defined list of objects subject to insurance.
First of all, you can insure the administrative premises, production equipment, household equipment, furniture, finished products, transport. The property insurance contract for industrial enterprises extends to buildings and structures inside which are located production facilities. A separate item you can insure objects under construction. In addition, under additional insurance conditions, it is possible to insure property owned by other persons: rented premises, goods accepted for storage or for transportation.
Sum insured property
Based on the rules of insurance of property of enterprises, the amount of insurance payments depends on the value of the insurance object and the tariff. In the insurance documents is filled in the column "insurance amount". It indicates the cash equivalent for which the property is insured. It is within this size that the insurance organization is liable for covering possible losses in the event of an insurance event. The insurance amount cannot be more than the real or actual price of the object on the day of signing the insurance policy.
For legal entities, the book value of property is used to determine the sum insured. However, given that depreciation is included in the carrying amount, the actual or replacement cost is used to more accurately determine the amount of insurance. As a rule, such a valuation of property value will allow the head of the enterprise to receive insurance compensation in the amount of insurance loss in the event of an insured event.
Insurance risks
Natural disaster and fire risks - this is only a fraction of those insurance events, in case of which property insurance is carried out. According to the current rules for property insurance of enterprises, SOGAZ, as one of the leading insurance companies, assumes responsibility for such insurance events:
- fire events (sudden ignition, fire, exposure to high temperature);
- lightning strike;
- explosion;
- natural events and cataclysms (storm, tornado, hail, mudflow, earthquake, hurricane, subsidence, flood);
- crash of airplanes, helicopters and other flying objects;
- accidents of water, heating and other systems that ensure the production cycle;
- illegal actions of unauthorized persons.
Additional risks in property insurance
Insurance companies may offer for a fee to indicate the risk of “glass breakage" in the contract.This risk is in addition to the generally accepted risks, in the case of which insurance is provided. This option is relevant for owners of stores where there are large outdoor display cases and stained-glass windows. Enterprises whose work is connected with the reception and delivery of goods can insure property against damage or destruction as a result of loading or unloading operations.
Property Insurance Exceptions
Regardless of the company, there is a list of risks, as a result of which the insurance company will not be liable and pay compensation. Such events include any military events or popular unrest. In the event of a radiation infection or nuclear strike, the insurer also declines its obligation to pay insurance. Terrorist events, sabotage or strikes that lead to breakdown or other damage to the insured property also relate to risks for which insurers are not liable for their obligations.
It should be noted that the mismanagement of the objects of insurance, which led to its damage or destruction, is not an insurance event. Similarly, the insurance company has the right to refuse to pay insurance compensation if the property was damaged or destroyed as a result of deliberate illegal actions of the insured.
Property Insurance Franchise
The insurance company, based on the current rules of insurance of property of enterprises and organizations, may propose to establish in the insurance contract the amount for which it will not be liable. This size is called a franchise. She may be:
- conditional - applies if the amount of loss is not more than a deductible;
- unconditional - applies for any amount of damage.
Thus, under a conditional deductible, the insurer pays insurance compensation only if the loss incurred is higher than the deductible amount. When applying an unconditional deductible, the insurance company, regardless of the amount of accrued compensation, deducts the deductible from this amount.
Insurance rate and insurance payments
The amount of accrued insurance premiums depends on the type of insured property, the list of insurance events, insurance period, frequency of payment, insurance history. Each insurance company has an individual approach to corporate clients, so the size of the tariffs can be in the range from 0.05% to 5% of the sum insured, depending on many risk factors.
As a rule, the calculated insurance payment is transferred to the bank account of the insurance company in one transfer. At the same time, there are cases when, under an enterprise property insurance contract, the insurance premium is divided into several parts and fixed for each term of the contract validity date. Thus, if regular payments are not received at the insurer's account within the time period established by the document, the contract may terminate early.
Duration of the contract and conditions for its termination
According to the rules of property insurance of enterprises and organizations, the liability of an insurance company comes from the date of conclusion of the contract, but not earlier than insurance payments have arrived in its current account. Thus, the main condition for the start of the validity of the insurance document is the receipt on the bank account of the insurer of the entire or the first part of the insurance premium in accordance with the concluded contract.
The contract terminates as a result of:
- expiration of the term for which it was concluded;
- non-payment of the next part of the insurance premium;
- payment of the entire insurance amount;
- liquidation of an insurance company;
- policyholder decisions;
- complete destruction of the insurance object.
An enterprise property insurance agreement will allow the owner to be confident in the future and take care of the development of production capacities without worrying about the possible consequences of accidents and natural disasters.