Asset insurances primarily provide coverage of assets. The most important asset insurances are:
a) Third party liability insurance for motor vehicles
Third party liability insurance is compulsory for all motor vehicles (cars, motorbikes, commercial vehicles or agricultural vehicles) used on public roads. Insurance covers damages caused with the vehicle to third parties. The premium for the third party liability insurance for motor vehicles depends, inter alia, on age of the driver, his/her driving experience and the type of vehicle. The insurance also works according to a bonus-malus system, meaning that the premium is reduced (bonus) in the event of accident-free driving and increased (malus) following a damage claim.
b) Public / Professional liability
Anyone who inflicts harm on a third party, whether intentionally or due to carelessness, can be held liable. There are countless danger sources that can result from an entrepreneurial activity. Practically speaking, a distinction is made between three risk and danger areas:
- facilities risks (e.g. construction defects)
- operating risks (e.g. environmental damages)
- product risks (e.g. damages caused by faulty products)
The insurance company examines the claims, pays justified demands of claimants and rejects inflated or even unjustified claims. There are different public and professional liability insurances depending on the business sector. Medical doctors, architects, engineers, lawyers, notaries, fiduciaries, chartered accountants as well as their employees should on all accounts take out a professional liability insurance so as to be protected in the event of injury to a person or damage to property as a consequence of their professional activity.
c) Interruption of business
Production losses resulting from an interruption of operations of a machine, of goods or when transporting goods as a consequence of an insured fire or water damage are not covered by the property insurance (chattels). An additional insurance (e.g. a machinery loss of profits insurance) needs to be taken out for this.