BeNew Insurance

Master Policy A policy that is issued to an employer or trustee, establishing a group insurance plan for designated members of an eligible group. In a master policy each member of the group is enroll, usually by the named insured who acts as sponsor, under the master policy and receives a certificate or evidence of insurance. The named insured usually receives some form of compensation for its administration of the master policy program. Master policies can also be used to include coverage for subsidiaries, sub-contractors, or other parties that the insured has voluntarily agreed to insure under the policy. Holders of master policies can issue certificates of insurance for other insureds under the policy that they can use as evidence of coverage. #benewinsurance #insurtech #inclusiveinsurance #insurance #reinsurance #takaful

General Liability Insurance General liability insurance covers common business risks like customer injury, customer property damage, and advertising injury. It protects your small business from the high costs of lawsuits and helps you qualify for leases and contracts. General liability insurance provides coverage for common liability claims from third parties (people outside your business). Commercial general liability insurance covers legal defense costs if someone sues over a bodily injury, property damage, or advertising injury. Your CGL policy can pay for everything from hiring a lawyer to court-ordered judgments and settlements. The cost of general liability insurance is based on your specific business needs. Your business is unique, and so are the risks. Factors that influence the cost include: Type of work, Location, Number of employees. Does your small business need general liability insurance? Most small companies need this insurance, especially if you rent or own an off

Direct Insurer A Insurance company that does not deal via an intermediary (brokers or agents). Typically direct insurers sell their products through contact centres (also called call centres) or online through a website. There are more direct insurers in non-life insurance business (e.g. home, auto, travel insurance) than in life insurance (e.g. life, disability, critical illness, health insurance) due to the nature of the life insurance business that requires more attention to the assessment of each case (e.g. completing health questionnaires, medical exams etc.). Nevertheless there are direct insurers who also sell life insurance. Direct insurers operate without branch offices or customer-facing representatives and consultants. Today, direct insurance companies operate primarily via the Internet. Communications are carried out primarily via apps, online portals, email, conventional mail or telephone. Direct insurers not only present their policies online, they also let you apply

Commercial Property Insurance Commercial property insurance protects your company's physical assets from fire, explosions, burst pipes, storms, theft and vandalism. Earthquakes and floods typically aren't covered by commercial property insurance, unless those perils are added to the policy. If you rent a commercial space, your landlord will likely require you to carry this coverage. Even when it’s not required, commercial property insurance is important for any small business that owns physical assets. This coverage insures expensive equipment as well as inventory. Different types of properties and equipment are considered for commercial property insurance. Several factors, such as location and occupancy, are considered while determining the cost of commercial property insurance. It is important to note that your policy document will describe specifically what property damage your insurance will cover and any exclusions be sure to read it carefully. Man-made disasters co

Business Interruption Insurance (BI) Business interruption insurance covers you for loss of income during periods when you cannot carry out business as usual due to an unexpected event (fire or a natural disaster). BI insurance aims to put your business back in the same trading position it was in before the event occurred. BI covers lost net income due to the closure of the business while repairs are underway. These policies may cover rent or lease payments, relocation costs, employee wages, taxes, and loan payments. For example, if a tree falls on your office roof and you need to shut down for repairs, this policy can help cover the costs of your lost income while they restore it. BI insurance may also cover a civil authority, like a government-mandated road closure that temporarily shuts down your company. To prove BI you must provide objective evidence of the losses via your financial statements, general ledger, tax returns, customer orders, vendor correspondence, and informati

Professional Indemnity Insurance (PII) Also, known as professional liability insurance (PLI), commonly known as errors & omissions (E&O) in the US. It helps protect professional advice, consulting, and service-providing individuals and companies. This insurance policy protects you against claims for loss or damage made by clients or third parties as a result of the impact of negligent services you provided or negligent advice you offered. Legal costs to defend yourself against any claim can be significant, and they can mean interruptions to your cash flow and disruption in your business. Tricky areas such as defamation and intellectual property are also covered by professional indemnity insurance. For example if your social media intern shares a questionable claim about a competitor or another company says your work is too similar to theirs, having the right professional indemnity policy in place can cover the costs of legal defence and any pay outs. Although professional

Fidelity Guarantee Insurance Fidelity guarantee insurance (FGI) exists to insured cover direct pecuniary loss your firm or organisation may face against theft of the firm's own money, securities or property by an employee, partner, contractor or volunteer. FGI can also be known as first-party fraud, theft or employee dishonesty cover. Most business owners are not prepared to face the infidelity of their employees and its negative implications. It is not unusual to know of situations where employees suddenly go missing with a substantial amount of company money or assets. Fraud claims have increased in both frequency and value in the past few years. There are several reasons for this, but the main factor is that online banking makes it so much easier to fraudulently transfer money. FGI premium may vary, depending on: 1Guarantee amount 2 Number of employees insured 3 The insurer's underwriting requirements. Questions to consider when managing risks around Fidelity: -Do y

Public Liability Insurance It refers to business insurance that covers claims by the general public for medical expenses and other costs resulting from injuries, death, and property damage involving your business. The general public includes customers, visitors, and delivery personnel. Public liability claims can arise from several circumstances, but negligence is the main trigger. It is a type of insurance for businesses of all sizes, across a variety of industries. Therefore any business that interacts with clients, customers, and other members of the public should consider public liability insurance. If a client suffers a slip-and-fall injury at your workplace, or if you or your employee damages a customer’s property, it could lead to expensive medical bills or repair costs, or even a lawsuit. Public liability insurance can help reduce the financial impact on your business, OR you accidentally knock over a mug of coffee, damaging a client’s laptop during a meeting, your policy

Subrogation Rights The Right of an insurer to recover from a negligent party for causing injuries/damages to the insured. A successful subrogation means a refund for you and your insurer. One example of subrogation is when an insured driver's car is totaled through the fault of another driver. The insurance carrier reimburses the covered driver under the terms of the policy and then pursues legal action against the driver at fault. The doctrine of subrogation allows an insurer to: -Bring a claim in the insured’s name against a third party responsible for a loss suffered by the insured; and -Claim from the insured any double recovery that has been made. The right of an insurer to be subrogated to the rights of its insured is typically based upon: -The terms of the policy of insurance; or, -The right of equitable subrogation, i.e., by operation of law. Subrogation rights are usually not at issue when an insurer is faced with a claim caused by the intentional act of its insured.

Average Clause A condition by which an insurer determines that the payment for any damage or any loss will be in proportion to the value insured. Average clause applies when the sum insured is less than the actual value of the goods or the property. If you are underinsured, you run the risk of being unable to claim for the true and total cost of any losses you incur. For instance, a building worth 100,000 but insured for 50,000 is totally destroyed. If the average Clause stated the insurer will pay 50% of the insured value then the insurer will only pay 25,000, which represents 50% of the insurance value, but 25% of the full value. It is importance of obtaining full coverage of an asset at the outset, businesses must also bear in mind that the Average Clause dictates that the sum insured is always adjusted to reflect the present total value at risk. Unfortunately, underinsuring is quite common in many markets for various reasons. It can arise willingly to reduce the cost of the p

No Premium No Cover Principle This principle is regulated in most insurance legislatures and provides that, the receipt of an insurance premium shall be a condition precedent to a valid contract of insurance and there shall be no cover in respect of an insurance risk unless premium is paid in advance. Generally, you will be provided a grace period which is typically up to 30 days after your due date. If you fail to pay your premium in the grace period as well, then your insurance policy will get terminated. The payment of premium with post-dated cheques runs foul as payment of premium. Unless and until a cheque is honoured, it cannot be said to be the same thing as money. Therefore no valid contract of insurance to ground the Insurer and insured. For a contract to be valid under the law, it must be backed by consideration. Consideration is the inducement to a contract; the reason or material cause for a contract; some right, interest, profit or benefit accruing to one party or

Treaty Is a reinsurance agreement under which the reinsurer accepts part liability on all risks as specified on the agreement. The issuing company is called the cedent, while the reinsurer is the purchasing company, which assumes the risks specified in the contract for a premium. Treaty usually represents a contract between the ceding insurance company and the reinsurer who agrees to accept the risks of a predetermined class of policies over a period of time. Treaty, considers multiple policies of a specific class of insurance issued by an insurance company (cedent) and indicates the companies will work together longer term. Treaty reinsurance frees up the capital of the ceding company and helps augment the solvency margin. It also enables the ceding company to increase the underwriting abilities by reducing the underwriting costs. Treaty reinsurance gives the ceding insurer more security for its equity and more stability when unusual or major events occur. For example, a compa

Exclusions Exclusions are provisions of an insurance policy that waive coverage for certain types of risks or events or ways an insurance companies make more narrowly what’s covered and what’s not in your standard insurance policy. For general insurance common exclusions include war, civil wars, terrorist activities. When an insurance policy excludes something, it means you have no coverage for that something. If you make a claim for it, the claim will be denied. An exclusion prevents you to be indemnify in loss or damage that is not covered by your insurance policy. If you wil not be able to file a claim succeed. Exclusions are used by insurers to create a balance between coverage for fortuitous losses (losses that is unforseen and unexpected by the insured and occurs as a result of chance and can reasonably prepared for) and the need for an insurer to remain solvent in order to pay those claims. Exclusions are found in your insurance policy in endorsements, definitions, and co

Salvage Title When a property (car) has been partially or totally damaged by an insured peril such as an accident, a natural disaster it can be considered as a salvage title by an insurer. The vehicle owner or the insurance company can apply for a salvage title. Often salvage is considered when there is total loss when a vehicle suffers significant damage, and the cost to repair it exceeds a certain percentage of the car's actual cash value. Insurance companies use several factors to determine whether a car is a total loss or not. Insurers calculate for total loss differently, but they typically consider a vehicle totaled if: -The damage to it is so severe that it’s not worth fixing. -The amount of damage is between 60% to 90% of its car’s value. -It was stolen and remains unrecovered. If your car is badly damaged in an accident, a natural disaster, or under other circumstances, your insurance company may decide it is not worth repairing and declare it a total loss. At that po

Cancellation in Reinsurance It is a legal notice to end participation by an insurance or reinsurance in a contract before it is due to expire. Participants in a reinsurance treaty can notify the other participants of their intention to withdraw from the treaty. Oftentimes, reinsurance contracts will allow each party to issue a Provisional Notice of Cancellation (PNOC per year and agree to grant 90 days in which to reach an agreement. Failure to reach an agreement would then result in the termination of the reinsurance contract. A contract may have a cancellation clause which permits the contracting parties to cancel it before it is due to expire, and may also stipulate the conditions for cancellation which can be performed by sending a cancellation notice. The clause may provide for a return of premium in respect of the unused portion of the contract. The cancellation of the contract on the continuous contracts is supported by this notice of cancellation. The accounting perspec