Business Insurance. Image credit

Business Insurance. Image credit

ZIMSEC O Level Commerce Notes: Insurance: 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.