When it comes to business insurance, coverage for risks of damage or damage to third parties should never be ignored. In fact, guarantees to cover operating losses, IT risks, and insurance contracts may be necessary too. Sometimes a fire or the delivery of a faulty product is enough to jeopardize the life of a company... Here are some policies companies should never ignore.


The first major category of insurance for companies is coverage of potential external risks. Flood, fire, theft threaten premises, equipment and so on. Against these damages, a specific insurance policy must be taken out. Even though this type of policy is not compulsory, it is nevertheless unavoidable. If the company is renting its premises - offices, factory, warehouse - it must have compulsory insurance to cover the damage related to the property. This obligation is not left open to interpretation, meaning it is required by law. A reputable insurance agency will be able to point you in the right direction.

In the event of a disaster, a company will make a declaration to its local insurance agent within a legal period recalled by the contract (two to five days, depending on the risks), or even immediately for important events (fire, natural disaster, storm damage, burglary...). The amount of compensation depends on the value of the collateral, so business owners should not forget to inform their insurer when the assets to be insured changes during the year (purchase of new machines, buying another site, and so on), and to verify the damage actually covered. Companies that have cyclical activities that result in a significant variation in product inventory should mention this specificity to their insurer to be better covered in case of damage. The value of inventories is then established on the basis of their largest annual amount and it is adjusted at the end of the year. The same goes for personal insurance.

In all cases, compensation will be paid most often after submission of invoices corresponding to the necessary repairs or the purchase of new materials. In the event of a heavy loss, the insurer may, however, make advance payments to the customer. Certain guarantees are systematic (attack, natural disaster, storm damage and so on), while others can be subscribed for particular losses (electrical damage and the like). Determining which policy is needed is just as important as the policy itself. Business owners have a lot to lose but it is crucial to not buy policies that are unnecessary.