insurance

• risk management

  planned approach to the handling of the risk that the individual is exposed to

  the identification of all possible risks/losses eg. risk of fire, personal injury ect.

  calculating costs of protection against loss
• ways to minimise risk

  insurance

  safe procedures

  health and safety

  insall security systems
• insurance proposal forms

  used to apply for insurance cover and the company is given particulars of the risks againts which the insurance protection is desired

  helps the company calculate the premium
• insurable interest

  insured must gain from the existence of the exposure unit and suffer from its loss

  you must benefit from its existence and siffer from its loss
• 5 principles of insurance

  insurable interest

  utmost good faith

  indemnity

  contribution

  subrogation
• utmost good faith

  all material facts must be revealed

  the person taking out the insurance must answer all questions truthfully. failure to do so can make the cover worthless

  if insurance is obtained in a way of fraud the cover is void
• indemnity

  a person cannot make a profit from a clim. the person can at best be put into the same position as prior to the loss
• amount of compesition payable

  amount item is insured for x claim

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  real value of the item
• average clause

  used by insurance companies to calculate compensation when an item is insured for less than its actual value. the insured person does not receive the full amount of compensation
• contribution

  if you hol dmore than one insurer liable they have to share the loss. if you take out two policies for your car you cant collect from both.

  linked to indemnity ensuring a person doesnt benefit from insurance
• subrogation

  if a third party is responsibole for damaging you rcar and you are compensated by your own insurer they can sue the other driver. when you accept an insurance settlement the insurer gets the right to sue the third party. this prevents you collecting twice.
• similarities and diffferences between household and business insurance

  property insurace

  contents insurance

  motor insurance

  PRSI
• types of business insurance

  public liability insurance

  employee liability insurance

  premises insurance

  contents insurance

  motor insurance

  fidelity guarentee insurance

  PRSI

  consequential loss insurance

  key person insurance
• risks to a business

  structural damage

  damage to stock, raw materials, components

  road traffic accident

  customer injuring themself

  worker injuring themself

  cash or stock being stolen by employee

  companys product being harmful
• underinsurance

  fails to insure the asset for the full value. in the event of a claim it will result in losses for the policy holder

  motivation for underinsurance is cheaper premium to pay