Pecuniary Insurance

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Pecuniary Insurance The word pecuniary comes from the Latin word "pecunia"' which means money. Hence, pecuniary insurance can be defined as any insurance policy that protects against financial losses. A broad definition, it provides a business with protection against financial losses stemming from a variety of causes, from crimes such as fraud or embezzlement to legal expenses, business interruptions, credit insurance and fidelity guarantee, bonds. Financial loss due to embezzlement or fraud. This is usually due to money lost from criminal activity within the company. An example would be a dishonest employee, perhaps a secretary or an accountant. Legal expenses insurance: This is an insurance policy purchased by organisations, professional bodies, trade unions and associations to cover unexpected large amounts of legal fees that might have to meet. Business interruption insurance: This is an insurance policy that provides coverage to policyholders for losses arising from interruption of business activities. It compensates a business for loss of income during periods when it is unable to carry out business activities due to unexpected events. Credit Insurance is an effective financial risk management tool that safeguards your company against losses arising from non-payment of trade related debts. It ensures that your company is not adversely affected by the unforeseen failure of one or more of your customers. Fidelity Guarantee Insurance offers protection to your company against loss of money or property sustained as a direct result of acts of fraud, theft or dishonesty by your employees in the course of employment. Bond; financial guaranty insurance, whereby an insurance company guarantees cover financial loss that arise from for example non-payment or performance default from a company. For example, there is an interruption in the production of a factory as a result of a breakdown covered by the insurance policy. In this case, the insurer will indemnify the insured for the economic loss caused by the breakdown (loss of profits). Pecuniary insurance is distinct from casualty insurance, which covers hazards such as fire or weather. Pecuniary insurance deals only with financial losses. #benewinsurance #insurtech #inclusiveinsurance #insurance #reinsurance #takaful

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