Question

Explain four insurance policies that the owner of a supermarket may find useful for the business.

Answer 1

1. Loss of profit/consequential loss policy: This issues against loss caused by closure of business temporarily after occurrence of insurance risk/awaiting compensation
2. Fire policy: This aims at compensating the owner for losses arising from unintentional fire to the business
3. Theft/burglary policy: This protects the owner from loss of property that may occur through theft or burglary.
4. Public liability policy: in paying claims to outsiders from customers who may be injured in the business.
5. Fidelity guarantee policy: to cover losses suffered through workers dishonesty e.g. fraud.
6. Workmen’s compensation policy: This is to assist the workers who may be injured in the course of duty.
7. Motor vehicle policy/ Third party policy/ Comprehensive insurance policy: To cover business vehicles in case of accidents.