Understanding loss insurance and how to choose it

Loss insurance is a type of insurance that protects against financial losses due to a dangerous event. Loss insurance is usually on certain objects such as property or personal assets, places of business, buildings, or building projects.

According to the OJK, the losses covered are losses

Loss of the insured object
Damage to the insured object
Loss of expected profits
Legal liability to third parties
Guarantee the fulfillment of obligations if the insured cannot fulfill their obligations

How to choose a loss insurance product

There are several important things that you should pay attention to when choosing loss insurance either for your own use or for the company you work for.

Here are some tips

Choose the item that needs to be insured

Separate objects or goods based on their economic value. For example, if you want to take out fire insurance for your home then you only need to include objects that you feel are necessary to be covered with insurance. For example, at home, you have a set of computer tools so you can't enter it. This is because the recovery value of computer companies is very low.

Clearly identify the goods

You should identify the goods or objects that you want to insure early. For example, in a garment factory, you must clearly record the machines that are still related to production activities.

Choose an insurance company with a good reputation

It should be noted not only the premium rate that you have to pay per month but the type of claim and insurance protection benefits that you get from the insurance company where you are insured. In addition, also choose a wide insurance company guarantee such as cover property all risks. This is so that you don't experience financial losses in the future.

Choose an insurance product package

It is recommended that you choose an insurance package at the same time this way you will get good service and discount facilities. In addition, it is recommended to choose first loss insurance from the insurance company. This is so that the premium you pay does not become too big.

By using loss insurance, you can reduce losses at any time without interfering with your financial risk.