Companies do not need to insure themselves against every risk. When starting a business such as Guaranteed rent, the risks that could cause the greatest damage to the business should be assessed. The necessary corporate insurance can then be specifically selected.
Assessment of risks
The most important risks are rated according to the following formula: The value of the item to be insured multiplied by the probability of occurrence of the risk results in values that you can compare with one another. The higher the value, the more interesting insurance is.
Which insurance does a company need?
There are two types of insurance for entrepreneurs:
Company insurances protect the company from risks that threaten the company. With these company insurances, you can save costs if you agree to contribute to the damage yourself or if you minimize risks by taking safety precautions.
The personal protection concerns the person of the entrepreneur and insures him against risks such as illness or accident-related loss.
Public liability insurance
Public liability insurance covers damage that the company causes to third parties. The insurance covers personal injury or property damage in the amount of the agreed sum insured.
Property liability insurance
The asset-liability insurance is an insurance for service providers and advisory professions. If they give incorrect advice, these professions can cause financial losses for their customers, for which they have unlimited liability. The insurance covers damage in the amount of the agreed sum insured.
Legal protection insurance
Legal protection insurance covers costs that arise for the company in a legal dispute. The insurance enforces claims for damages and fends off unjustified claims.
Electronics insurance covers damage to the company’s electrical or electronic equipment and systems. The damage could be caused by water, short circuit, operating errors, or construction errors. The compensation takes place either in the form of a replacement, a repair, or a monetary replacement.
The machine insurance covers damage caused by damage, destruction, theft, or operating errors of the operating machines.
You should take out transport insurance if your company transports goods and bears the transport risk. The transport insurance covers damage that occurs on the way.
Business interruption insurance
Business interruption insurance covers damage caused by the interruption of business activities in the event of fire or damage to machinery. The running costs and the lost profit are covered.