Insurance of risks, main acceptance of risk reduction.
Insurance of probable losses serves not only reliable protection against unsuccessful decisions, but also increases the responsibility of the persons making decisions, forcing them belongs to development and decision making more seriously, to regularly hold protective measures according to insurance contracts.
However, it is difficult to use the insurance mechanism at development of new products or new technologies as insurance companies have no in such cases sufficient data for carrying out calculations.
In most cases risks insurance means insurance:
The insurance companies traditionally perform insurance by all listed types.
Essentially new approaches to insurance of an entrepreneurial risk for steel market:
- construction, commissioning risks and warranty obligations;
- the equipment from breakages;
- civil responsibility;
- life and health of leading experts.
- insurance upon breaks in production;
- insurance upon risks of non-execution of contractual commitments.
Insurance upon a break in production
The enterprise can be insured from losses owing to production idle time (rendering services) which will arise for the reasons which are not depending on the enterprise. Depending on terms of the contract of insurance the damages, for example, production company suffered both as a result of a complete stop of activity and because of the partial decrease in turnovers connected with a loss occurrence can be paid.
Loss-of-profits insurance owing to an enforced break in production is performed, as a rule, together with other types of insurance, for example with property.
The insurance contract provides compensation payment if having rummaged in production is caused by one of the following reasons (insured events): the fire, lightning stroke, explosion, illegal acts of the third parties, natural disasters, etc. (except for military operations or change of political country situation).
Further to avoid disagreements with insurance company, from breaks in production it is necessary to specify the most complete list of cost items which will be compensated and also a detailed algorithm of their determination in the insurance contract.
As a rule, according to terms of the contract of insurance the insurance company undertakes to compensate:
a) uncollected profit (the amount of profit for the period of idle time is defined proceeding from the profit got for last year; if last year the company had no profit, then uncollected profit according to the insurance contract is not paid);
b) the expenses made for prevention of a break in activity;
c) the fixed costs which are not depending on production volumes (the number of the rendered services, the performed works), including:
- expenses on social assignments and the salary of employees (except those for whom the piece-work pay is established);
- room hire charge;
- percent on the loans attracted to a loss occurrence;
- the taxes and fees which are not depending on results of the insured activity (the property tax, land tax, registration fees, etc.).
The limit of responsibility of insurance company (the size of a maximum amount of payments) is defined as the amount of losses and a lost profit calculated on the basis of data of accounting records for the greatest possible term of the termination of activity which is defined by an expert way.
By drawing up the agreement special attention needs to be paid on the amount of the established franchize which can be defined both in days, and percentage of a maximum amount of payment. The amount of a franchize according to insurance contracts from breaks in productive activity, as a rule, is 3 10 days.
The insurance rate is established by insurance company in dependence:
The size of an insurance rate can fluctuate within 0.6 5% of an insurance sum.
- from branch of the national economy which the enterprise treats;
- from the maximum insurance period of a stop of production;
- from the established amount of a franchize.
Risk insurance of failure to follow contractual obligations
It is possible to distinguish insurance of the commercial (commodity) credits and leasing transactions from the most demanded methods of risk insurance of non-execution of obligations.
Insurance of commercial credits
Subject of the insurance contract of commercial credits are valuable interests of the enterprise which can be broken because of a complete or partial non-payment by debtors of actually received goods (works, services).
The insurance company pays compensation in the following cases:
At the same time the suffered damage is not compensated in case of accident on production, lack of the necessary goods, money, deliberate non-execution of contractual commitments, etc.
- the debtor is declared bankrupt judicially;
- force majeur circumstances (except for risks of military operations and policy risks);
- long delay of payment which makes a reservation in the insurance contract and can make depending on specifics of activity of the enterprise from 60 to 360 days.
At non-execution of contractual commitments because of force majeur circumstances the insurance company pays an insurance sum, as a rule, in 30 days.
If non-execution of obligations is caused by bankruptcy of the contractor, then the insurance company has to pay compensation after the debtor is declared bankrupt by a court decision.
As a rule, at insurance of the commercial (commodity) credits the general insurance contract is signed.
The enterprise which signed such contract reports about all the buyers of insurance company which estimates their solvency.
For determination of degree of an insurance risk and making decision on the size of an insurance premium the insurance company can request constituent documents, accounting records, copies of contracts, the certificate of solvency and other necessary documents.
By results of verification of the submitted documents the list of the companies, issue of a commercial credit by which it will be insured is created. For each contractor the maximum size of an insurance sum is established. The tariff makes 1 2.5% of a maximum amount of the payment determined in the agreement and for each contractor pays off separately proceeding from:
- the number of contracts in a month;
- average amount of contracts;
- availability of permanent agreements with contractors;
- availability of losses.
Agreements with the contractors having at the time of agreement signature accounts receivable to the company are not insured.
However these debtors can be included in an insurance coverage after repayment of accounts receivable.
At appearance of the new contractor or change of significant terms of the contract the insurance company reserves the right to change insurance conditions: to lower or increase a tariff and also to refuse to insure the contractor if its solvency raises doubts.
At a loss occurrence the size of a loss and compensation which will be paid to the enterprise which insured the risk will include:
The term for which the insurance contract is signed is equal to the term of the agreement on which there were obligations.
- the amount of damage at a rate of the cost of the lost goods or pending obligations;
- lost profit (profit);
- additional costs on damage assessment, legal costs, etc.
Insurance of leasing transactions.
Now in the market of insurance services there is an opportunity to insure not only the property leased but also the financial risk connected with leasing transactions: complete or partial failure to pay leasing payment at the scheduled time without the profit of the leasing company. It is important to note that according to the insurance contract the damages caused by change of currency rates, penalties, percent for delay, penalties and other indirect expenses are not paid.
The insurance contract of financial risk of the lessor is signed for the term equal to the term of the agreement of leasing, and the insurance rate fluctuates within 0.5-5% of a maximum amount of compensation.
Insured events under the agreement of leasing are similar to those which are established for insurance contracts of commercial credits.
The risk of a non-payment of leasing payments only the leasing company which provides property in leasing can insure.
Respectively the insurance company compensates losses of the leasing company.