Business insurance

It’s time to audit the company’s risk and insurance program


IT is a common good practice for businesses to start the year with a new budget, and it’s not uncommon for bonus spending to not get the prominence it deserves. By taking the time to review and verify all insurance policies underwritten by the business enterprise, savings can be made as well as improved policy terms and conditions.

A simple questionnaire could guide businessmen in reviewing their insurance programs to ensure that their business will be adequately protected in the new year.

Below is the questionnaire:

Will your current insurance coverage be sufficient to allow the business enterprise to repair, rebuild or replace property in the event of a loss? In other words, have asset values ​​been updated and sums insured adjusted accordingly? Please note that the average clause of a fire policy requires that the full value of an asset be insured, otherwise, in the event of a loss, the policy would only be liable for the sum insured divided by the actual value of the property. assets that are confirmed by an approved expert firm.

Does the insurance policy include business interruption insurance?

Have fire insurance policies on properties been extended to include coverage for damage from earthquakes, volcanic eruptions, typhoons and floods?

Does the company apply adequate liability limits for its products, premises and vehicles? Does the company have insurance covering hospitalization and medical costs in the event of disability due to illness or accident?

In addition to a life insurance program designed for the benefit of the family, have you also provided separate insurance policies to cover outstanding loans and mortgages?

Have you reviewed your insurance program with a licensed and qualified insurance agent or broker?

Are the insurance policies and inventory list as well as vital documents such as birth certificate, marriage certificate, share certificates and title deeds kept in a safe place or in a safe ?

Have you made a will and is it up to date?

While insurance can compensate the business enterprise for losses, what is more important is to restore its ability to resume operations as soon as possible. Thus, a business continuity management plan should also be the main concern of its management.

The author is a risk management consultant and editor of Insurance Philippines magazine.