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6 Benefits of Loss Insurance

6 Benefits of Loss Insurance

The benefit of using insurance is not to eliminate the risk, but to get financial assistance for losses arising from the risk. There are many benefits of insurance, and one of them is general insurance benefits.

Loss insurance is an agreement between the insured and the insurer where the insurer will bind himself to compensate for losses incurred by the insured due to a dangerous event.

For example, a person has certain assets that can be damaged and lost, by having loss insurance, these losses can be lighter. The complete loss insurance benefits are as follows:

1. Gives a sense of security.

Everyone besides wanting to meet their basic needs also tries to protect themselves from all threats of danger to themselves, their property and their interests.

Having loss insurance can protect assets or property from possible risks that may occur.

2. Completing credit requirements.

The benefit of completing these credit requirements is for example in financing to buy a vehicle, the finance company will require it to buy insurance protection for the object.

3. Reducing the cost of capital.

The next benefit is reducing the cost of capital, by transferring risk to the loss insurance company, the capital reserves to cover risks can be reduced.

4. Ensure business stability.

Then there is the benefit of ensuring business stability, namely by guaranteeing insurance for assets used for business when a disaster strikes, then business losses can be quickly recovered.

6. Ensuring costs for business risks.

Every business certainly requires certainty to make a profit. Payment of premium money will ensure costs for running a business from dangerous risks, such as fire.

With loss insurance, risks like this can get protection against losses that can occur.

Losses covered by loss insurance

This loss insurance is usually for certain objects such as property, personal assets, places of business, buildings, or also building projects. Types of insurance benefits for companies for this loss include fire insurance, freight insurance, and miscellaneous insurance.

The benefits of insurance for the community itself are not only enjoyed by those who are directly related to the insurance business but also enjoyed by families who enjoy the insured assets as well.

As protection against risks from events that can cause losses, there are several things that loss insurance will cover.

Reporting from the OJK website, there are several losses that will be borne by the loss insurance company. Losses covered by loss insurance are as follows:

  • Loss of the insured object
  • Damage to the insured object
  • Lost expected profit
  • Legal responsibility to third parties
  • Guarantee the fulfillment of obligations if the insured cannot fulfill his obligations

Tips for choosing a general insurance product

After understanding the meaning of general insurance and understanding what benefits can be obtained by using general insurance. Then the next is to consider whether to use loss insurance or not.

Following are some tips for choosing a loss insurance product that customers can do before deciding which type of general insurance product to use.

1. Select the items to be insured

The first and foremost tip is to choose items to be insured, make sure to choose items that are really needed to be covered by insurance. Separate objects or goods based on their economic value first.

For example, if a customer wants to take out fire insurance for a house, then they only need to include valuable objects that are deemed necessary and important to be protected by this loss insurance.

2. Clearly identify the items to be insured

The next tip that must be done is to identify what items will be insured with general insurance. For example, having a shoe factory, it is necessary to record the machines associated with the production of these shoes.

3. Choose the right insurance

The second tip is to choose the right insurance, which has a good reputation. Apart from paying attention to the premium that will be paid per month, what types of claims and benefits will be obtained from the general insurance.

Then also choose broad insurance company guarantees such as property cover all risks. Where this aims so as not to experience financial losses in the future.

Also pay attention to the financial condition of the loss insurance company, to avoid the possibility of default if the financial condition is bad.

4. Choose the right insurance product package

It is highly recommended to choose an insurance package all at once, so that you will get services and facilities with more profitable discounts.

In addition, it is recommended to choose first loss insurance from the insurance company, so that the premium paid does not become too large.

No one can predict what will happen to all of their assets in the future.

Because of this it is important to have insurance, insurance will help offset losses experienced due to various risks that occur suddenly. Insurance will help to maintain and protect assets from loss.

Insurance can also help manage financial plans in a more planned and orderly manner. By using loss insurance, you can guarantee against loss or damage to property.

Or it could be other interests that can be caused by fire, accident, damage, and events that can cause other losses.

By understanding what general insurance is, knowing the benefits of general insurance, knowing what losses will be covered by general insurance.

As well as tips for choosing the right loss insurance product, it can be a consideration for using general insurance.

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