Insurance in our country is gaining momentum every year. Property risks today insure both individuals and legal entities. Recently, however, many entrepreneurs have turned to insurance companies in order to obtain an additional type of insurance, payments for which are made when production was suspended due to an accident. Insurers usually call such situations interruptions in production.
Insurance against possible damage.
Due to the fact that modern cities are developing rapidly, it has long been not uncommon for them to cause fires, various technological disasters, or other natural disasters. In this case, of course, not only ordinary citizens, but also the majority of enterprises suffer. Therefore, it is no coincidence that insurance against such cases has recently gained popularity. This is explained by the fact that after such emergency situations, the equipment of the enterprise can be seriously damaged. As a result, some conveyor lines will stop at the enterprise or the production process will stop completely. Moreover, the damage from interruptions in production can be calculated in a substantial amount. Thus, a situation arises when the current expenses of the organization remain, however, it simply will not receive the planned profit. Under current expenses understand:
1) the salary of staff;
2) repayment of a loan taken from a bank;
3) payment of the rental value of the shops of the enterprise;
4) annual payment of taxes and similar expenses.
That is why insurers are increasingly offering company managers insurance against possible interruptions in production. Its essence is that the insurance company, upon signing the corresponding contract, is obligated to make payments to the company in the event of a situation that actually led to a temporary stop of the production process. Insurers today offer many options for insurance programs, the conditions of each of which depend on the individual indicators of enterprises.
There are also types of insurance against interruptions in production, which additionally provide for certain payments to companies to cover the costs that they need to spend on restoring the production process. Sometimes, insurers also compensate for the repair of equipment necessary to launch production facilities. Since all the listed losses are a consequence of damage that was caused to the production, as well as to the property of the enterprise, this type of insurance is signed as an addition to the main document - property insurance. It is worth noting that business interruption insurance has long been quite successfully applied in most European countries, as well as in the United States of America.