Buildings, equipment, goods and office appliances make up only a portion of the property the insurance of which should be given some thought by companies.
The aim of corporate property insurance is to indemnify damage caused to property pertaining to business, thereby ensuring the company’s sustainability.
When insuring a company’s property, the objects that shall be insured and the extent of the required insurance coverage can be freely selected. This selection shall serve as the basis for the preparation of an insurance package that is based on the company’s needs.
The minimum level of protection is fire coverage, which covers damage arising from fire, lightning, explosion or sudden engagement of a fire extinguishing system. We also recommend insuring property against pipe leakage, storm and hail damage, and offences against property. The aforementioned makes up Package Insurance A.
A broader level of protection is offered by Comprehensive insurance which, in addition to the above, also covers damage caused by other unexpected and unforeseen events.
Upon insuring property, it is of particular importance that property with a depreciation of less than 50% would be insured for its reinstatement value, i.e. in the amount that is necessary for the acquisition of similar property at the insurance location (e.g., with transport and installation expenses). Values that change over time (e.g., goods) shall be insured based on the maximum amount of goods in stock. Upon insuring buildings and equipment, one should consider whether construction or acquisition might become more expensive in time.