Employee Positions Fidelity insurance.
This insurance covers unfaithful acts perpetrated by employees against
their employer’s property: theft, embezzlement and the like.
The insurance rests on the perceived adequacy of the internal controls
in effect, and therefore covers the different positions in the company,
(accountant, treasurer, cashier, etc.) irrespective of who holds
the position. A limit is determined by the insured regarding how
much he wishes to cover per occurrence, and based on the number
of employees and the perceived efficiency of internal control systems
in place, the premium is determined by the INS.
INS usually requires a counter-guarantee
in order to write this type of coverage. Acceptance of claims is
conditioned to the filing, by the insured, of criminal charges against
the employee(s) presumed responsible for the event.
Money in Transit.
This policy covers money or negotiable documents being transported
by employees of the insured company, against acts carried out by
non-employees, typically hold-ups or assaults during the time the
money or valuables are outside the company premises. The premium
is computed as a percentage of the monies transported by the insured
over a period of one year, and the insured must state a maximum
value to be insured per shipment. Initially an estimate is used
as a basis, subject to an annual adjustment at the time of the policy’s
anniversary, based on the sum total actually transported as reported
by the insured.
The premium rate depends on the number
of employees who transport valuables, the maximum value per shipment,
the length of the transportation, and security measures in place.
Workers’ Compensation for Employees.
By law, employees must be covered by Workers Compensation insurance.
The benefits awarded to them in the event of occupational illness
or work-related accidents are detailed in the Labor Code, and represent
the extent of their recourse against the employer.
Rates are a percentage of payroll, and
depend on the perceived degree of hazard. Surcharges are imposed
on employers with a poor accident rate record. Rates usually fall
between 1 and 3% of payroll. The reporting requirements are onerous
so, although Agents can be used to contract the policy and collect
premiums for Workers’ Compensation, it is usually more efficient
for the everyday paperwork to be handled directly between the employer
and INS.
This insurance is in addition to Social
Security, which is also mandatory, and covers non work-related injuries,
sickness, pregnancy, childbirth, etc. for employees and their dependents.
Social Security is not handled by INS, but by Caja Costarricense
del Seguro Social, and must be contracted directly with that institution.
Other Types Of Business Insurance.
Other types of insurance available include: Life insurance, Medical
insurance, Travel insurance (these three can be contracted in Group
form), Aircraft, Marine Hull , Marine Liability, Special Equipment
insurance, Construction All Risk, Machinery Breakage,
Performance Bonds, Personal Fidelity Bonds, etc.
Boiler
This insurance covers against the damage that results directly from
an explosion. It also covers Liability, both to physical injury
or death of people and to third party property damage.
Machine Breakage
Protects against all risk sudden and unforeseeable physical damage
to the machines of the company. I.E. Sabotage by workers, short
circuit, voltage damage, errors in manufacturing process, incorrect
mounting, and external blows. It has a single coverage.
Named Risk
This insurance is for specific, named risks like for equipment for
irrigation, water, fumigation, topography, transmissions, communication
and looms. It covers fire and lightning, theft, strikes, hurricanes,
earthquakes, third party damage, collision or overturning of the
equipments transport.
Import & Export Freight
The insurance can cover import, export or both. They cover damage
or loss of freight caused by dents, breakage, fissures, contamination,
humidity and upset. There are special coverages for perishable (frozen)
goods.
All Risk
This type of insurance allows for a more detailed control when there
are various types of damage coverages in a company, eliminating
possible redundancies in coverages. All Risk covers all physical
risks that are not expressly excluded.
The benefit of this is that it reduces the administrative cost because
all physical risks are handled with one policy. Additionally, the
premium paid for the All Risk is usually lower than the sum of the
premiums for separate coverages.
The settlement and adjustment on claims is also streamlined. It
is offered to those companies whose risks are concentrated in buildings,
furnishings and equipment.
Disclaimer: This document is intended
as a summary of most relevant points of the insurance policy; as
such, it does not contain every provision stated therein. |
