All companies are obliged to take responsibility in the event of causing damage to third parties owing to their activity. This means that companies now have to protect themselves from these eventualities with insurance products, to transform what could be an impractical compensation payment with possible drastic long-terms effects on their future, into a small, stable, known fee.
As with all insurance products, it requires extensive knowledge of the characteristics of the coverages and of the insurance companies' activity to determine which risks need to be covered, which compensation payments may affect us and in what way, and to fight for premiums in line with the situation being covered at the economic moment in which it is incurred.
Characteristics of the types of coverage:
> Principal coverage: through the payment of indemnity, this covers damages to third parties, both material and personal, as result of conducting business or industrial activity.
> Occupational accident coverage: similarly, if the Employer's Guarantee is taken out, it covers those persons contracted by the company under the general system, considering them to be third parties to be indemnified in the event of their lodging a claim against the company for personal or material damages.
> Coverage for sub-contractors: it is possible to cover damages caused to subcontracted persons or companies by the policy holder, as well as the damages that these subcontracted persons or companies may cause to third parties, and whose claims may affect the policy holder.
> Expenses and claims: these contracts may also include coverage for damage claims, payment of securities and, above all, legal expenses. Thus, the insured party will not have to meet the high costs of defending against the aforesaid claims.
Large claims related to this type of cover are becoming increasingly common. This is a result of the increased general awareness of claims and a certain degree of experience in this area on the part of business and the public at large. Plus, it is essential to have a good coverage plan to ensure that any possible claims are not critical to the future of your business activity.
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