Business Insurance

Transit insurance.

• Covers goods during the transportation from the time they are loaded onto the transport vehicle until the time they are offloaded at their destination.
• The policy may be specific e.g. it states the type of cargo being carried and the risks insured or it
• can be comprehensive ie. Covers all the cargo risks.

Employer’s liability

• A legal requirement under workman’s compensation e.g. National Social Security Authority of Zimbabwe.
• Is taken by the employer to:
• cover employee’s claims against injury or death at work or diseases caused by employment e.g. cancer induced by workplace chemicals.
• Covers injury due to negligence of the employer.
• Compensates the employee.

Consequential loss

• Is taken by the employer to cover loss against theft or fire.
• It covers:
• Loss resulting from an insured loss
• Loss resulting from temporary closure of the business after a fire damage.
• Loss of revenue, income from rents , costs of salaries payable to employees, cost of leasing the building and standing charges e.g. interest on debentures.
• Ensuras that a firm continues to receive reasonable payments in lieu of profits.
• Assists businesses to pay rent or tes whilst the business is closed.

Fidelity guarantee.

• Is taken out by the employer.
• To cover against dishonesty of employees who handle money.
• Provides security to employers against embezzlement, misappropriation of funds and forgery.
• The insurer resources the money stolen by the employee.
• Usually after the employee has been convicted in a court of law.

Public liability.

• Taken by the employer.
• Covers claims made by the public.
• Who get injured withing the firm’s premises e.g. A shopper injured by a falling item.

Pluvious policy

• Pluvious means “to do with water.”
• Covers against outdoor activities being disturbed by rain or a storm.

Plate glass

• Is taken by building owners e.g. shop owners.
• It covers against damage to the building’s display windows.

To access more topics go to the Commerce Notes page.