Before Taking Out a Property and Casualty Policy
Before taking out a property and casualty policy, remember the following:
- Insured events and exclusions: insurable events must be carefully examined, selecting the most important ones and favouring broader cover if possible.
- Cover: in addition to more traditional cover, such as fire and theft, cover applicable to your particular case should also be assessed, e.g. third-party liability, or legal protection. Companies should also consider, for example, business interruption cover, designed to maintain business continuity in the event of damage that could lead to lengthy disruptions.
- Insured value: it is important to choose values appropriate to requirements and to the risk. The maximum coverage for third-party liability must be accurately assessed. In the case of "insurance to value", the value must reflect the actual value of the insured asset because, if it is lower – known as "under-insurance" – the reimbursement for any accident would not take account of the difference between the insured value and actual value.
- After signing the agreement: requirements and circumstances can change over time. Remember to adjust insurance cover if circumstances change, e.g. modify insured sums if new machinery is purchased to ensure that requirements, cover and costs are fully aligned.
Before taking out a personal injury policy, remember the following:
- Human capital: the value of "human capital" is based on a careful and logical analysis of the potential economic consequences of events that could lead to disability – partial or total – and the inability to lead an active life. Insurance cover involving larger sums is therefore preferable, particularly for serious events, as opposed to frequent events not having serious consequences.
- Guarantee and exclusion coverage: examine guarantees and exclusions carefully to avoid the unexpected in the event of an accident. Consider whether, for your particular circumstances, certain exclusions should be eliminated and the warranty therefore extended.
Before taking out a policy against vehicle damage, remember the following:
- Maximum coverage: if possible, choose maximum coverage for third-party damage in proportion to the specific risks, and greater than the minimum legal requirements, which are sometimes too conservative.
- Savings opportunities: savings can be made on the cost of a policy by activating additional services that allow the insurer to identify the risk more precisely, for example, the use of a black box, or of partner body shops to repair vehicle damage, etc.
- Additional services: it is important to make provisions for potential emergencies associated with accidents, such as the sending of a tow truck, assistance in the event of an accident, accommodation near the accident site, etc.
- Persons: it is also important that the driver and any passengers have accident cover in the event of a road accident, and to consider cover for any legal expenses that the accident may incur.