What are the aspects for choosing the insurances?
Many small and medium sized enterprises just wish to save on the insurance, which is unfortunately a mistake.
The first insurance, which is really important to conclude, is the company liability insurance.
What is a company liability insurance?
The company liability insurance is supplied in case of personal and material injury, which damage is caused by you, your company or your employee to a third party. Just because you, as company owner, are liable for your employees, it is important to conclude the company liability insurance.
* if a client slips over in my office and breaks his leg
* if at the construction site, my employee drops the hammer from the seventh floor and it falls on a Porsche,
* eventually the employee has cut a whole pallet of plasterboard, and the material is the customer’s property
* if I cause damage as an accountant
* if I cause damage as an elderly-care provider
and so on.
What services are provided by the company liability insurance?
In case of the claims for damages incurred, the company liability insurance examines if these are rightful against you, and if it is unlawful, the insurer refuses it on behalf of you – even before the court. It is good because the costs of it are assumed by your company liability insurance. The rightful claims for damages are covered by the company liability insurance according to the agreed services.
In an entrepreneur’s life, the second important thing is the health and care insurance. In Germany, the entrepreneurs do not have an obligation to pay allowances for themselves. This way, everyone can decide individually if he/she pays privately the health insurance for himself/herself. This Act was modified January 1, 2009, and the payment was made obligatory. Its extent varies and may be very different.
(The monthly fees start from about 100-150 euros)
The third thing, and possibly the most important thing in the life of an entrepreneur, is the insurance for the incapacity for work (permanent health damage (invalidity)). What happens to me if I become incapable for work due to a disease or an accident? Or if we do not mention the 100% reduced capacity for work but simply about a reduction of a certain extent. What will happen to my family, my credit, the school career of my children?
The German insurance companies offer very good and affordable opportunities (e.g. the example of a construction entrepreneur born in 1970: in case of becoming incapable for work in 100% due to an accident the fee would be €600, and if the insured event occurs, he would get a single amount of € 550,000, and a pension of €1000 per month until his death). Let’s take a closer look at the accident insurance from a more practical point of view. What happens in case if I cannot work for only 4-6 weeks, for example due to a broken arm or leg? The duration of recovery is not so long, but dropping out of work for 6 weeks and producing any income, that is too much. This can be felt by all small and medium sized enterprises, mainly those who do not have employees. There is also a solution for this; the insurance company can extend the service for hospital and home care daily compensation fee. There is a wide range of varieties here. Demanding a daily compensation right from the first day would increase the insurance fee in an unrealistic way. However, if you demand for example a daily compensation of €25/day from the eleventh day and €50 compensation/day from the twenty-second day, then you may have a more affordable construction. Hence, most of the entrepreneurs can bear fourteen days without income but from the fifteenth day, it may become critical and from the twenty-second day, the entrepreneur can have a fairly huge loss. Of course, our partner company elaborates a personalized offer for you.
The fourth important insurance is the valuables insurance. In this case, it is about the insurance of the tangible assets of the company, for example high-value hand tools, computers, copiers.
Do you have a question? Ask for our offer.