Insurance and You

Someone once said the only things in life that are for sure are death and taxes. This is not totally true. There is one more thing that is for sure – change. If you look around, you will see we live in an ever-changing society.

In order to cope and live with what the world has to offer, a person has to recognize the ever changing forces. Because no one has the gift of divine knowing what will happen next, one must protect oneself by preparing for the worst possible consequences the world has to offer.

To be assured against these unpredictable phenomena, insurance was invented. Insurance comes in the form of policies and covers almost every conceivable risk, peril or event. These policies are classified by risk with the specifications and coverage detailed in the body of the insurance policy.

Business insurance is big business. Insurance policies cover every facet known in the business world. For example, there is a policy to protect businesses from any loss resulting from robbery.

The most common form is the comprehensive money, securities, and payroll policy. The policy covers loss of money not only because of robbery but also such perils as fire, earthquake, typhoon and flood. Money is covered inside and outside the premises of the insured. The coverage outside premises covers holdup, accidents to the carrying vehicle or to the employee.

A limit of liability is set for money inside the insured’s premises. This amount covers cash collections and the petty cash fund. The limit is set at the maximum level of cash. Usually this is the amount kept after banking hours and over the weekend. The peak season should also be taken into account in determining this limit.

A separate limit of liability is set for cash outside the premises. This refers to cash on the way to the bank to be deposited or on the way to the premises after having been withdrawn from the bank. Cash in the hands of field salesmen and collectors can also be covered.

The third limit of liability is set for the payroll. The coverage starts as soon as an employee, such as a cashier, gets the cash at the bank, continues until the cash arrives at the premises and ends at the time the payroll is handed over to the approved employee.

The loss of checks is also covered but the insurance company will pay only what it takes to have the checks reissued. So, it is important that as soon as the loss of a check is known, the bank should be advised immediately to stop payment on it.

Insurance companies consider the risks covered under the comprehensive money, securities and payroll policy as hazardous. The policy is available only on an accommodation basis; that is, it will be issued only to a client who has a substantial amount of other policies, such as fire, which are considered less hazardous.
To make a long story short insurance provides just about everyone peace of mind for one reason or another.

Leave a Reply