Insurance lines expertise > Protecting financials
In case of the insured event, financial stability of the company can be secured by the following insurance coverages (please ask us what insurance do you need to protect your financial flows):
Business interruption insurance is dedicated to cover business income losses that the Company may incur in case a catastrophe, such as a fire, causes its operations to break or interrupt. Business Interruption Insurance Covers:
profits, the Company would have earned, had its property not been damaged by the covered disaster
fixed costs, such as salaries, bank interests, etc. that may occur even if the main business activities are temporarily interrupted
the costs Company incurs to speed up restoration of business operations
Business interruption insurance policy cannot be purchased on a “stand alone” basis, i.e. indemnification under this policy would be made only if business interruption has been caused by physical loss or damage covered under respective Property Damage or Machinery Breakdown policy.
Advance Loss of Profit (ALOP)
ALOP Insurance provides indemnification for the actual financial loss sustained due to a delay in completion of the insured construction / erection works. This Insurance covers Loss of gross profit due to reduction in turnover and / or increase in cost of working due to delay caused by insured accidents. Indemnification under this policy would be made only if this delay has been caused by physical loss or damage covered under respective Construction All Risks or Erection All Risks policy.
See also Construction All Risks (CAR) / Erection All Risks (EAR) insurance.
Advance Payment Bonds
If a contractor fails to perform a contract, Advance Payment Bond guarantees the repayment of money advanced to the contractor by the project owner.
Performance bonds provide financial guarantee that agreed contract is going to be implemented. If a contractor fails to perform under a contract, Performance Bond guarantees monetary compensation for specified amount.
In general terms, credit insurance offers protection against buyers who fail to pay their debts to the Insured due to their actual or temporary insolvency. Credit insurance policy can be designed to cover buyers of both domestic (so called “Trade credits insurance”) and export (so called “Export credits insurance”) market. Credit insurance not only indemnifies for losses due to buyer insolvency, but also gives the opportunity to control the risk and prevent future losses, and provides debt collection services in the event of a loss.
Insurance Products for Financial Institutions
There are number of insurance products dedicated for banks and other financial institutions.
Banker’s Blanket Bond (BBB) insurance includes covers for:
Crime (a.k.a. Employee Dishonesty) – dishonest / malicious act committed by Bank employee with an intent to cause the Bank to sustain a loss or seeking personal financial gain
Premises & Transit – cash or its equivalents while being lost through theft, or mysterious unexplainable disappearance, or being otherwise damaged, destroyed or misplaced within the premises of the Bank, or while transporting in the armored motor vehicle or in ATM
Forged Cheques & Securities – loss resulting from the forged signature of fraudulent alteration of any Checks, Bills of Exchange, Bankers Drafts, etc., or any Withdrawal Receipts or Promissory Notes payable at and paid by the Bank. Loss resulting from the Bank having in good faith acted upon securities that bear a Forged Signature, or bear a Fraudulent Alteration, or are Counterfeit, or are lost or stolen
Counterfeit Currency – loss resulting from the receipt of the counterfeit currency
Electronic and Computer Crime Policy covers loss resulting from the Bank:
having acted on the fraudulent input of electronic data
having acted as a result of the fraudulent preparation or modification of computer programs
the malicious alteration or destruction of data
having acted as a result of the destruction of data by a virus
having acted on fraudulent incoming communications or fraudulent outgoing transmissions
having acted on fraudulent verbal instructions.
Credit (Plastic) Card Fraud – covers unauthorized use of debit or credit cards that have been lost or stolen or the use of counterfeit or fraudulently altered cards that are purported to have been issued by the Bank
Banks and other financial institutions are also exposed to Professional liability.
Financial institutions are also supposed to maintain a proper Directors and officers liability Policy.