Company insurance: property is not just a building
It's your cash flow and calm. Supporting or missing coverage of the traffic interruption may jeopardize everything.
The property of the company is not just a building and a machine. It is your cash flow, your responsibility and often the safety of your family.
Most owners of companies have one special ability, they can make money even in turbulent times. They can change strategies, manage people, survive crises.
And then there comes the area that's not solved until it's already on fire:
insurance of company assets and liability insurance.
I'll tell you what, the company's insurance is set up as something, so maybe it's good, but the insurance contract is not a talisman, it's a risk management tool, and without a regular insurance audit, it can become a ticking bomb.
And more importantly, the owner's personal finances and corporate risks are connected. If something happens to the firm, it usually starts to hurt at home within a few weeks.
The company's insurance audit is not an administration. It's risk management.
When I'm dealing with an insurance audit of a firm, the same scenarios are repeated.
1) Support: the most expensive of savings of thousands
Support is the most common problem with company property insurance.
The company is insured. It pays. It looks safe. Then comes the damage to the fire, water, destroyed technology and insurance company shortens the fulfillment because the insurance amount does not correspond to the real value.
For real estate, it has been said for a long time that a large part of the buildings are supported. If it is a reality for households, the situation in companies is often worse.
Why?
Because the company's assets change quickly:
- buy a machine
- expand production
- Healthy technology
- add photovoltaic
- increase stock stocks
And the insurance of the company's assets will remain set according to the values from 2018.
2) Insurance building, but not what it earns
The owners often talk about the lobby being insured, but the lobby is an envelope.
What generates profits is inside:
- technologie
- data
- Production process
- know-how
- key staff
- smlouvy
Without properly set-up business interruption insurance, relatively small damage can be a waste of disposal. Combining fire, production shutdown, long delivery times and pressure of the bank can destroy years of built-up business within a few months.
3) Corporate liability insurance: most often underestimated risk
Corporate liability insurance is exactly the kind of cover you rarely deal with until a problem comes up.
Damage caused by customers, defective manufacturing, health loss, regression claims, litigation.
For some fields, one major event is enough and the company is out.
And it's not incompetence. It's a normal reality of business. Therefore, quality liability insurance is a fundamental part of corporate risk management.
The risks are not theories.
Tornado in South Moravia. Flood. Extreme experience.
Insured damages in the Czech Republic are in the order of billions to tens of billions of crowns for major events.
It's not a marketing number. It's a reminder that it's unlikely to happen.
Company insurance is only cheap until you need it.
Connecting companies and families: separate worlds do not exist
The owner of the company should not separate personal finances from corporate insurance.
Typical reality:
- the company has basic property insurance, but does not have a covered business interruption
- responsibility is set minimum
- at home the property is secured
- family doesn't have enough reserves outside the company
And when there's trouble, everything starts coming from one source, from the firm.
But the company is like,
- mzdy
- loans
- leasingy
- DPH
- dodavatele
Family has:
- mortgage
- current expenditure
- Children
- School
Cash flow is a relentless discipline.
Therefore, it makes sense to deal with the insurance audit of the company together with a view to the personal collateral of the owner.
What should include a quality insurance audit company
Insurance audit isn't gonna send in the contracts and check it out.
It's a systematic check:
# 1) Real understanding of business
Where value is created, what is the key place that when it goes out, costs everything.
*) Reproductive value of property
Not accounting value. But the real cost of recovery today.
SECTION # 3) Machinery, technology and supplies
Delivery times, service, substitute.
SECTION # 4) Insurance of the interruption of operation
How much is a month without production?
Company liability insurance
Product, profession, employer's work according to industry.
(# 6) Updates for changes
New hala, new product, new market = reason to open the fuse.
Audit is not a one-time action. It's a risk management regime.
# When was the last time you opened your insurance policy?
Most companies haven't opened an insurance policy in years, and then they say, " Insurance doesn't do it. "
In fact, they often follow the exact contract you let grow old.
# Finally: company insurance to keep the business afloat
Do not wait for fire, flood or liability damage to find out that you were only insured on paper.
The insurance audit of the company is not about finding the cheapest insurance policy. It is about making insurance of the company's assets, liability insurance and cover for interruption of operation truly protect your business and your family.
If you want, we can look at the risks that you carry today as a firm, as an owner and as a family, and what you can do about it clearly and without unnecessary complexity.