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The virtues of insurance

Getting insurance for your business is not just an expense. It can also be a very sound investment.
By Eyes Gonzalez |

In business, “Better safe than sorry” entails more than just avoiding mistakes in operations or in building the brand’s image. It is also about protecting assets from unavoidable, unpleasant circumstances, both man-made and natural.


[related|post]While some business owners consider insurance as an expense rather than an investment, seeking and paying for legal protection of equipment, vehicles and similar properties that are prone to calamities or theft is one way to lessen risks of unwanted shutdowns.


Michael Rellosa, president and general manager of Fortune General Insurance Corp., enumerates the different kinds of insurance policies that business enterprises must consider.


“Insurance for businesses depends on what type of business you would have,” says Rellosa. For instance, if the business is a restaurant, he suggests owners get a comprehensive general liability policy. It covers claims in four basic categories of business liability: bodily injury, property damage, personal injury and advertising injury. This policy also covers the cost to defend or settle claims against restaurants like poor sanitation, improper food handling and preparation and other cases, even if the claims are fraudulent.



For businesses that are product-oriented, products liability insurance is also an option, the Fortune Gen head says. This policy covers for claims after a manufactured product has been sold, or for claims from an operation that the manufacturer has already completed. As companies are legally responsible for any damage or injury that their products cause or inflict on consumers, it would be a smart move for business owners to get this kind of coverage, he adds.


Company vehicles must also be included in insurance packages, says Rellosa. “There should be comprehensive insurance and third party liability insurance for motor vehicles,” he says.
Under a third-party claim, the insurer settles the claim with the claimant, who is considered as the third party. The payments from the insurance policy are made to the claimant and not to the insured, which in this case is the business.


Rellosa says that businesses should also get their adequate medical insurance coverage for all their employees and the mandatory social security insurance from the Social Security System, the state-owned pension fund.



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