Financial losses insurance
As a brokerage firm, we will offer you consultancy and intermediation in financial insurances that protect you against the risk that may intervene in your business.
Insuring financial risks represents an advantage for the insured and activates in his favor, allowing the transfer of risk to an insurer.
Financial losses can be covered and insured with an adequate form of financial insurance, offered by our specialized insurance broker. The purpose of financial losses insurances is to cover the damages that may occur in any area of business.
The financial losses insurance may cover:
- The gross operating profit
- The fixed expenses
for a period of maximum 6-12-24 months following the damage.
The usual time deductible is 5-10 days (the loss registered during the deductible is supported by the insured and from the insurer will collect the compensation which exceeds this value).
The maximum indemnity period: usually 12 months – during this period, compensations are paid, starting with the date the insured event generates business interruption. Depending on the specific activity of the client, the indemnity period may be shorter (6 or 9 months) or longer (maximum 24 months).
Example cost for financial losses insurance:
Loss of profits generated by business interruption on the fire and disaster policy (or an accidental damage to an equipment) which affected buildings and/or equipment.
Sum insured (estimated for the 12 months of insurance): 1 000 000 euros
The time deductible: 7 calendar days
Annual premium: 1000 – 2500 euros (can be higher or lower, depending on the risk level involved by the client’s activity, the volume of premiums paid in the last 12 months, damage history in the last 4 years – causes and values).
Business interuption: 90 calendar days
Compensation: 1 000 000 * (90-7)/365 = 227.397 euros
Mentions/arguments for financial losses insurance:
This type of damage has a low frequency, so the premium paid in 20 years, approximately 30.000 euros, justifies a favorable decision, because a significant damage will generate the recovery of the amounts paid and a great part of the losses.
If the buildings and equipment are funded by a bank or leasing society, the interest of the entrepreneur is to generate gross profit and to ensure cash-flow to pay the fixed costs. The insurance policy can be assigned to a financial institution.
Contact us and we will kindly respond you:
MARIUS MAIER firstname.lastname@example.org 0742 276 537
LIVIU BACIU email@example.com 0745 276 537