When establishing a sole proprietorship or running a larger or smaller company, it is necessary to think about company insurance. Not every profession is obliged to take out an insurance policy, only strictly defined activities have such a requirement. Running a business, however, is associated with risk, both in terms of finance, the possibility of an accident or disasters to which company buildings and machines are exposed. Therefore, it is not worth increasing the risk. There are over a dozen insurance companies on the market offering very different policies, it is necessary to check their scope and compare prices. It is also worth checking whether the type of business does not legally oblige us to take out a policy on civil law transactions.
Basic liability insurance
This is the basic version of insurance for companies, well known to all drivers who are required to take out such insurance. The legislator imposes such an obligation also on companies operating in certain industries. The obligation to have such a policy is required, among others, by accounting offices and law firms, but not only. Most often, those required to take out a third party liability insurance policy are representatives of professions requiring specialist knowledge and skills, whose error may expose the client to serious consequences (legal, health or financial). Hence, the obligation to insure against civil law transactions are also doctors (third- party insurance for doctors ), property appraisers, engineers, architects or insurance agents and brokers ( insurance of a service company). In the case of running a business of a different nature, it is also worth considering purchasing such a policy. What does it protect against?
The scope is very similar to that of motor third party liability insurance. Professional third-party liability insurance is to protect people who conduct business activity against financial consequences of an action that resulted in a personal or property damage. In such a situation, the insurer will cover the financial costs of wrong decisions by guaranteeing compensation to the injured client.
What can you insure in the company?
The scope of insurance for the company is very wide. In fact, every insurance broker offers at least several versions of such insurance. What can you insure in the company? Most often, the insurance covers buildings, structures and elements of small architecture, such as facades and building equipment, i.e. all office equipment. This insurance is used by the vast majority of companies, due to the high costs of possible repair or reconstruction. These are of course not the only things that can be insured with the company. The company’s insurance may also cover:
- third party items
- company capital expenditure
- staff items like laptops
- external building layers such as posters, advertisements, antennas and glass
The selection of the appropriate scope should depend primarily on the nature of the business. When running an IT company, it is necessary to take out insurance for computer equipment, the repair of which may exceed the amount of several thousand zlotys. If your company repairs expensive jewelry or other valuable items, it is worth insuring third party items.
Not only the object, but also the insurance coverage is important. And so you can choose among insurance against fires, earthquakes and vibrations, lightning strikes and even terrorism, explosion or theft with burglary as well. vandalism. There are also so-called all risk policies which cover all risks. Additionally, with such policies, the obligation of proof rests with the insurance company.
What can you not insure your company against?
There are also things that cannot be covered by insurance, i.e. the so-called exclusions. And so, the insurer will not pay compensation if the damage was caused by intent or is the result of gross negligence on the part of the entrepreneur or his employee. The insurers also do not pay any compensation resulting from the operational destruction of the equipment and the resulting losses.
Of course, it is impossible to insure a company against everything, but thanks to a properly selected policy , an entrepreneur significantly reduces the risk of doing business. The choice of the scope of the policy should primarily depend on the nature of the activity performed and the property owned. It is also necessary to consider the purchase of third party liability insurance, even in industries that are not subject to statutory obligations. History knows many cases where even one accidental mistake can introduce the company into big problems, not only in terms of image, but also financial. Purchasing a basic policy is not a huge expense and can save your business. Therefore, it is worth thinking about it, regardless of the fact whether the company has been on the market for several years or is just starting. Both sides will benefit.