Corporate insurance

The corporate insurance is needed by all companies that own assets, the loss or damage of which could have a serious impact on their business.

The general third party liability insurance is needed by, among others, property owners and managers, service providers, industrial companies, educational and leisure institutions, and shopping centres. For example, a shopping centre is responsible for ensuring that the stairs inside the building, which customers use every day, are undamaged and safe. During the winter, property owners need to be careful that ice and snow falling from the roof of their building does not endanger people’s health and property.

General third party liability insurance is also very useful for a service company. For example, it can help if the floor in a shop, café or beauty salon is wet and a customer falls and submits a claim for damage. There may also be a situation where a waitress in a café accidentally spills hot coffee on a customer’s lap and the company has to indemnify the dry-cleaning bill. It can also be the case that the cleaner knocks over a vase and the water damages the equipment on the table, or uses a cleaning agent that damages the items.

Property insurance can insure building (building, building envelope, structure, interior finishing) and movable property (inventory and equipment, goods), but also other property by agreement.

Business interruption insurance can cover the loss of business profits, rental and leasing income, fixed costs, and other agreed expenses in the event of business interruption.

General third party liability insurance can be used to insure a company’s civil liability, i.e., its pecuniary obligations towards third parties to whom the company has caused material damage.

The insurance contract will enter into force and the insurance cover will start on the starting date of the insurance period indicated on the policy and will end on the expiry date of the insurance period indicated on the policy.

The insurance contract is concluded for a fixed term. As a general rule, a contract is concluded for one calendar year. If you wish to renew the contract, please let us know at kindlustus@lhv.ee or by contacting your manager.

The insurable value of building is its replacement or residual value.

• The replacement value is the cost (i.e. construction cost) of rebuilding a new building with similar and the same technical characteristics at the same place of insurance immediately prior to the insured event. For example, if the building has a surface area of 1,000 m2 and a replacement value of EUR 1,500 per m2, the sum insured is EUR 1,500,000.
• The residual value is the replacement value, which has been reduced by the depreciation of the building. The residual value is the insurable value of the building if the insurable value of the building is indicated in the insurance contract as the residual value or if the depreciation of the building is more than 50%. For example, if the area of the building is 1,000 m2 and the replacement value is EUR 1,500 per m2, but the building has depreciated, for example, by 60% over the years, then the sum insured is EUR 600,000.

The insurable value of inventory and equipment is its replacement value or market value.

• The replacement value is the cost of a new inventory or equipment of the same type, with the same use, with the same technical indicators and characteristics, and having the same completeness, together with the cost of transport and assembly, immediately prior to the insured event.
• Where inventory or equipment of the same type, use, technical indicators and characteristics, and completeness is not available, the insurable value will be determined on the basis of another new inventory or equipment with characteristics and indicators as similar as possible.
• The market value is the replacement value, reduced by the depreciation of the inventory or equipment. Market value is the insurable value of inventory or equipment if the insurance contract specifies the market value of inventory or equipment as the insurable value or if depreciation due to the age and depreciation of inventory or equipment is more than 50%.

The insurable value of goods is their repurchase or reproduction value.

• The repurchase value is the maximum possible cost of equivalent goods at the place of insurance during the insurance period for their re-acquisition together with transport costs. The insurable value of goods does not include the insured person’s share of profits or other costs.
• The reproduction value is the maximum possible cost of equivalent goods at the place of insurance for their re-production during the insurance period if the insured object includes goods produced by the insured person themselves. The reproduction value includes the cost of acquiring raw materials and direct production costs. The insurable value of goods does not include the insured person’s share of profits or other costs.

In the event of the business interruption insurance, it is worth thinking through the possible loss event. On this basis, you can decide how much of the company’s operating profit, rental or leasing income, fixed costs or other agreed costs, up to the maximum amount would be affected by the loss event.

The amount insured under liability insurance (indemnity limit) is the maximum amount of all insurance benefits (including legal and expert fees) payable during the insurance period.

When setting the indemnity limit for liability insurance, an assessment could be made of the potential maximum damage that could be suffered by third parties in relation to the economic activity of the business and the characteristics of the real estate.