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 How to Choose the Right Loss Insurance Product



There are several things to consider when deciding on a loss insurance product for yourself or your company's use. Here are some tips on how to choose the right loss insurance product.

# Separate objects/items based on their economic value

Select items that truly need to be insured so that you won't incur losses in the future. For example, if you want to take out fire insurance for your house and its furnishings, there is no need to include the computer and its accessories in the calculation. This is because the recovery value for computers is very low compared to their purchase value or the value when they are insured.

# Clearly identify the objects/items

It is recommended to first identify the items/objects to be insured. For example, in a garment factory, include the machines, generators, and other equipment related to the factory's production activities.

# Choose a reputable insurance company

Do not be easily tempted by low premium rates offered by certain insurance companies. If you are deceived, it is feared that the insurance company may not be able to settle the claim payments when you file a claim with that insurance company.

# Provide clear information/details

It is advisable to provide very clear information about the objects/items to be insured. Additionally, seek as much information as possible about the insurance products offered. You can ask about the type of insurance, premium rates, coverage extent, costs to be paid, and claim procedures.

# Good insurance coverage

It is better to choose insurance with the widest coverage before the insurance company issues the policy. For example, choose property all-risk cover for building property insurance, or all-risk cover for motor vehicle insurance.

# Choose an insurance product package

It is recommended to choose a package of insurance rather than just one product. This way, you will receive better service and discount facilities.

# Choose the First Loss Insurance system

If you have a high-value insured object, it is recommended to use the first loss insurance system from the insurance company. This is to ensure that the premium you have to pay does not become too large.

# Adjustable Policy system

The amount or value of insurance for merchandise stock usually shows different volumes every day and every month. To address this, you can choose an adjustable policy system so that you will pay premiums based on the actual transactions or volumes you have made.

# Be diligent and ask questions

It is recommended to always read all policy statements and clauses carefully. You can also ask about the complete claim procedures before agreeing to the issuance of the insurance policy. If there are any errors in the writing, it is best to notify the insurance company immediately so they can issue a correction on the policy.

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