ZIMSEC O Level Commerce Notes: Insurance: Business 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.
- 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.
- 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.
- 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.
- 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 means “to do with water.”
- Covers against outdoor activities being disturbed by rain or a storm.
- 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.