Property-liability insurance Research Paper Example | Topics and Well Written Essays - 1250 words

Property- financial obligation indemnification - Research Paper Example contrastive insurance plans argon needed that non only save the owners from many problems in future barely also to satisfy the requirements of government regulatory offices and in acquiring loans from commercial banks. Property, general liability, histrions compensation, automobile liability, spirits liability, life insurance, loss of business, nutriment contamination, and specific peril insurance are the most commonly utilise contingency plans available. We will discuss these options one by one in length. Firstly, all business owners are need to have property insurance. A small amount of annual premium is paid to the insurance company against a full coverage from incidents like fire. One such incident can look at everything to ashes. National Fire Protection Association reports that fire related cases are the second highest cause later arson and constitute 14% of the total number of commercial fires in the US from 1999 to 2002 (Patrick, Nolan. 2008). Secondly, general liability insurance plan protects from claims like slip and fall or when a customer gets sick aft(prenominal) eating food. Although it is named as general liability, business proprietors deal with such cases on a timed basis. Centers for Disease Control (CDC) reports that there are 25,000 food related shipments arrive per day from 100 incompatible countries. Food and Drug Administration department manages to inspect only 1% of them (Patrick, Nolan. 2008). Therefore, food borne illness is on the rise more than ever. It makes imperative to have a general insurance plan. Beside an insurance plan that covers food borne illnesses, business owners should be careful about the inventory suppliers, technical specifics to store perishable items e.g. minimum required temperature for walk-ins and so on. Thirdly many states, like Texas, require restaurant owners to acquire liquor liability insurance. It responds to diametric al liabilities cause by selling or serving liquor in the premises. For example if some inebriated and gets involved in a fight than the serving party is responsible. The worst scenario is when someone gets intoxicated, drives away, and involves in a traffic accident. Fourthly, if a worker gets injured while at work then you need worker compensation insurance. Lets understand the importance of such liability plan with the help of a practical scenario. Suppose an employee is driving a company truck and gets cornered by another(prenominal) vehicle. As a result, the employee gets seriously injured. Now who compensates the employee? Since the party at fault carries worker compensation insurance so the claim will be settled down by the insurance company no emergence how much it is. However, the annual premium goes high and thus affects the employer to a great deal. Fifthly, Life insurance is another optional plan that the owners may consider for themselves. In case of the owners demise, the heirs may not have enough to pay for his debts. In this case the business will be possessed by the lender. Many multinational companies and corporations offer this plan to their employees also. But it costs a hefty amount to the employer in terms of premium. An employees death on the premises raise claims, then life insurance plan addresses such liabilities towards the employer. Sixthly, Loss of Business insurance