Property Insurance Of Legal Entities

Proprietary insurance of legal entities is not a whim of their owners any more. Such type of insurance is intended to protect not only a property of the company, but also the third parties who are directly connected with them anyhow.

It is worth noticing that this type of insurance is less risky than for example a car insurance. The agreement is signed generally for one year, sometimes for two or three years. In cases if the insurer wants to sign the agreement for example for 2-3 months, the insurance company will attentively study the reason of such insurance. Also the insurance company, most likely, will demand a fee at least for half a year of insurance of such property type and a single fee for the policy of assurance.

In case of the standard agreement conclusion for 1 year, fee can quarterly be paid (at that payment amount for every quarter may differ) or to 2 payments can be done for fifty percent from annual. In case of a loss occurrence payment will be according to the amount stipulated in the insurance contract less the insurance premium underpaid for a year.

However, during the work with legal entities the need of proprietary insurance only for small period is rather a frequent phenomenon. It is connected with fixed movement of property in the course of their work (sale, transfer). For example, the company makes purchase of goods with subsequent resale to retail sellers. All motion cycle of property can take from several hours to one year and more from the moment of wholesale purchase. Therefore, it is not always reasonable to sign the agreement for the whole year. In this case the item based on which your insurance company gives back a fee for unused period less the incurred expenses should be added to the agreement.

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