PURPOSE For Companies To Take Out Business Insurance

 An average Spanish industry has assets to protect worth 2.2 million euros. This figure is a good measure of how important insurance is for Spanish industrial clients since any mishap that endangers or volatilizes all or part of that value would be very difficult to counteract. Furthermore, it must not be forgotten that behind an average industrial heritage of 2.2 million euros there are people who depend on it, either as direct workers of the insured industrial establishment or through other establishments, who, being their suppliers or customers, depend in some way on him.

 International data suggest that Spanish companies are among those most protected by business insurance against problems that may arise. Spanish offices, businesses, and industries currently have insured items for an added value that slightly exceeds 1.6 billion euros. To give you an idea, a worker would have to be in the office for five million years to earn all that money.

Reasons for companies to take out business insurance

An average mishap in a Spanish industry costs 3,500 euros; Few industries have cheap mishaps, so when problems arise, it is important to have coverage.

 Think that the statistical expectation of a sheet metal hit on a car is that it will cost a little less than 900 euros to repair it. But those 900 euros are compared, for example, with the almost 13,000 that a mishap can cost in the most common business insurance, which is multi-peril. Or the  4,700 euros that take a mishap due to machinery breakdown. And here we are talking about average costs, because in business insurance when you look at the most expensive mishaps,  it is not strange to find costs above 100,000 euros.

Thus, perhaps it could even be said that the main service that business insurance renders is not in the payments it makes.

Because bad events happen; they occur, and cause some 3,000 million euros in losses each year, which are absorbed precisely by the insurance institution, in such a way that it constitutes a guarantor of the continuity of the activity.

Thus, every time an insurer pays 10,000 euros to a carrier who has suffered damage to his vehicle or merchandise, or 7,800 to a builder who has had a problem on a construction site (both are average figures), you are not paying you all that money; But if you consume what the carrier was carrying or you are buying a flat, in reality, yes, it is saving you. Business insurance, then, is also there for you to do better.

The main service is in the sense of security that the industrialist gives the fact of knowing that, if negative things happen, someone, the insurance, will bear the costs. As insurance mutualizes risks (that is, it spreads them among all its policyholders), it can afford to ask each client to pay a small part of said risk. But if each of those clients were faced with the possibility of suffering a loss on their own, their attitude would be very different. Without mutualization, you should save more resources, and that means you would charge more for your products. You would pay it, then.