When it comes to insuring your business, there is basic coverage and what is called specialty coverage. Basic coverage is the standard type of insurance almost every business needs to have, property, liability, business auto, and worker’s comp. Specialty coverage is less standard and is provided to cover specific types of risks some businesses face and therefore must mitigate.
There are a wide range of specialty insurance products that are industry specific. If you are an exporter, you will need Ocean Cargo coverage. If you are a financial advisor, you might need special coverage specific to any fiduciary responsibilities you might have. As these products can be very industry specific, you will want to talk to your agent, check with any professional organizations you belong to, and ask your industry contacts for more information on the specific types of coverage you need.
There are also a few specialty products that may be needed across a variety of industries. Here is a brief overview of each of these types of coverage and information on what kind of businesses may need to secure it.
Key Employee Life Insurance
Regardless of how big your business is, there are likely people within in, including yourself, that may need separate life insurance policies in order to protect the company. Generally when we talk about life insurance as it relates to an employee, it is the life insurance policy the company provides or arranges for the employee. The beneficiary is chosen by the employee and the intent is to take care of the employee’s family in the event of their death. Key employee life insurance is exactly the same except that the beneficiary is the business and the intent is to help the business recover from the loss of a key employee.
Businesses whose income is completely generated by or reliant on the participation or involvement of specific people may need to purchase this type of policy. Law firms, doctor’s offices, financial advisors, and small business owners are all examples of the type of business that can benefit from this type of policy. Generally, this type of policy is a term life policy and it only remains in effect so long as the employee is employed by the business.
Kidnap and Ransom Insurance
Around the world, research shows that criminal gangs kidnap an estimated 25,000 people each year with the sole intent of collecting ransom payments and making money. In many countries, kidnap and ransom is an industry bringing in millions of dollars a year. For businesses operating in these countries, this fact can pose significant risks to employee welfare and financial health.
A kidnap and ransom policy is designed to provide a limited amount of protection for businesses operating in these areas of the world. The type of policy determines what expenses and costs are covered. Most individual polices will not cover the cost of the actual ransom payments but does include the expense of negotiating the ransom and securing the safe return of the person who was kidnapped. Most corporate policies cover negotiation expenses, ransom payments, and lost wages owed to the kidnapped employee.
Companies of any size that are operating in parts of the world where kidnap and ransom activities are prevalent need this kind of coverage.
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