As a business owner, you must have realized that it is easy to generate profits but it is much more complicated to protect the assets of your company that help in generating the profit.
Asset insurance covers all your assets against sudden and accidental damage. If they can be repaired, the company will cover the cost of repairing and if they are un-repairable then the insurer will replace the same.
It will be defined in the policy document which assets will it cover which can include buildings, service facilities, walls, gates etc.
An asset with an insurance policy of any kind. That is, an insured asset is one for which an insurance company must compensate the owner if the asset is damaged or destroyed. Most companies have insurance policies on their assets, or at least their tangible assets, to transfer the risk associated with owning them. Likewise, most individuals have insurance policies on their major assets, such as their houses and cars.
Traditional business property insurance protects the buildings, equipment, stock and possessions of your business from physical threats such as fire, flood, theft or malicious damage. Most people are familiar with this type of policy since they are similar to those you would take out on your own house, car and home contents. This insurance covers the cost of repairing or replacing your lost or damaged stock or assets.
Another popular form of business insurance is ‘business interruption’ or ‘business continuity’ cover, which protects you against financial losses should you have to temporarily halt your operations for some reason. Whether your loss is due to physical damage to your property, or other circumstances outside of your control such as a power outage or industrial action, this type of insurance protects your income and is often used in conjunction with property insurance.
There are also other types of specialized insurance which can help you to protect your company’s physical and financial assets. These address more insidious threats such as fraud or crime by one of your employees; theft or infringement of intellectual property; and breaches of your network security. You can also take out insurance which covers your goods or equipment in transit.