Insurances: Policy term, Loss Prevention Guidelines and the Basis of indemnity Principle

Description

This Skill Bit defines key insurance concepts, starting with the “policy term,” explaining its duration, renewal options, and the importance of understanding the associated terms and conditions. It also outlines loss prevention guidelines, offering strategies businesses can implement to minimize risks and potential losses. Additionally, it explains the principle of indemnity, where compensation for covered losses reflects the full cost of repair or replacement without depreciation. For example, in property damage insurance, insurers cover the full cost of rebuilding or repairing damaged property with new materials, disregarding the wear and tear of the original.

Duration approx. 4 Min.

Tier: basics