Legal entity property insurance

Property insurance is essential for operation of an organization, since capital assets are the source of prosperity for the owner of the organization, as well as its employees and managers.

If something bad happens to the assets for any objective reason, this means a disaster to the organization. This leads to the owner’s bankruptcy and discharge of personnel.

Additionally, when an insured accident takes place, the organization does not usually have money for the restoration purposes (all profit is usually withdrawn by the shareholders, and then either re-invested or spent). If a major accident occurs, the organization has two options: either get a loan, or draw investments. It is very difficult to revive a non-insured organization.

Consequences of such accidents as fire, Act of God, leakage of water, heating and sewing pipes, and theft, are often disastrous. This is why it is important to protect your valuable property beforehand.

The following object can be insured:

• buildings, constructions, offices, and other types of real estate;
• internal and external furnishing; equipment, industrial machinery; furniture;
• computers, household and office equipment; raw materials, half-finished products, stock of goods;
• other property.

Complete property sets and individual building, constructions, and other types of property can be insured.

Insurance covers destruction or physical damage of the property due to:

• fire (including damages by combustion products and fire extinguishing devices);
• thunderbolt;
• gas-holder and gas pipe explosion; Act of God;
• physical damage by water as a result of failures of water supply, sewage, heating systems, and fire extinguishing systems, as well as due to leakage from neighboring apartments and unlawful destruction or physical damage to the property inflicted by third parties

Insurance rate can be based on the actual (market), replacement, expert or balance value of the property, or under an agreement between parties.

Insurance rate is determined individually for each category of property, and varies depending on its technical, operational, and other characteristics.

Insured objects are:

• property being in possession by the insured person;
• property given (received) under contracts of engagement, rent, hire, or lease.

Information:

• pledged property must be insured by depositor or pawnbroker, whoever is in possession of such property (art. 10, Act of Ukraine “About Pledge” No. 2655-XII of November 2, 1992);
• mortgage property must be insured by the mortgage giver to the mortgage bearer (art. 8, Act of Ukraine “About mortgage” No. 898-IV of June 5, 2003); leased property must be insured by the lease receiver (art. 13, Act of Ukraine “About Financial Lease” No. 1381-VI of December 11, 2003); insurance of rented property, which in possession of the state or public, is conducted according the Act of Ukraine "About Rent of State and Public Property”.

Printable version