SME final.docx - BFN2094 CORPORATE RISK MANAGEMENT...

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BFN2094 CORPORATE RISK MANAGEMENT COMMERCIAL PROPERTY INSURANCE Small and Medium-sized Enterprise (SME) No. Student Name Student ID 1. Melisa D/O Sabastine Rao 1122702431 2. Theraswaran Santiran 1101110458 3. Yasin Mohamed Ahmed 1101110744 Lecturer’s Name : Dr. HAZLINA BINTI ABD KADIR Group Name : Determined Submission Date : 26 January 2015
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Contents NO. CONTENT PAGE 1 Definitions 2 Importance of SME Insurance to a Company 3 The Service Providers and Services Offered 1) AIA Berhad. 2) AXA Affin General Insurance Berhad. 3) Tune Insurance Malaysia Berhad (TIMB) 4) AIG Malaysia Insurance Berhad 5) Zurich Insurance Malaysia Berhad. 4 Similarities & Differences Between the Service Providers 5 Income and Expenditure Comparison of Service Providers 6 Reference 7 Appendix
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COMMERCIAL PROPERTY INSURANCE – Small and Medium-sized Enterprise (SME) Definition of Commercial Property Commercial Property is any asset in the form of land and building, which is intended to generate profit. The term commercial property can also be called as commercial real estate, investment or income property. The examples of commercial property are shopping malls, offices, petrol stations, restaurants, hotels, clinics and convenience stores. In addition, commercial property is basically one of the three major types of real estate. Definition of Commercial Property Insurance Commercial Property Insurance is a type of insurance which covers any form of commercial properties such as shops, office building, retail store and so on. This insurance gives coverage on risk such as fire, theft and natural disaster. Commercial property insurance is used by many businesses including manufacturers, retailers or service-oriented businesses. There are also insurance providers who give protection against the company's account receivables, computers and also media. In addition, there is also options that can facilitate replacement on lost income when the company's operations are suspended and can no longer operate. For example, The Hartford Financial Services Group, Inc provides this types of services under commercial property insurance.
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In general, there are two common types of commercial insurance which are replacement cost coverage and actual value coverage. Under replacement cost coverage, the insurance company will pay the cost incurred to replace the damaged property with a new one with similar quality. In contrary, under actual value coverage insurance company will pay for the replacement cost of the property minus the depreciation cost for things which are aging. There are certain policies which may use the combination of both on deciding how to repay the company's coverage. In purchasing insurance, it is important to take into account the regional considerations. The insurance companies will do research on the company's locations before charging and offering them any premium or coverage. For example, businesses in Kelantan or Terengganu might need to purchase a separate flood insurance or pay higher insurance premium because its location is prone to floods during the monsoon seasons.
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