Mataracy
VIP Contributor
The fact that a factory owner has adequate fire insurance cover means that he has the capital to reinstate his factory and so recreate jobs for his workers who might otherwise be unemployed for a considerable time.
Frequently several firms in an area are dependent bon other firms, either as customers or as suppliers and so they too may be at risk.
When the multiplier effect of the reduced income of a group of workers is taken into account, society at large in that locality may suffer if a firm goes in to liquidation after an uninsured loss.
If full consequential loss( loss of profit), insurance has been arranged in addition to the material loss cover, there may not be the need for even temporary lay- offs of workers following a major loss.
The aid which insurance provides in maintaining industry in an area stabilizes the economy of that area and in aggregate helps to stabilize the national economy through the continued sources of rates and taxes.
What are the other social benefit do you think the insurer can benefit from insurance company?
Frequently several firms in an area are dependent bon other firms, either as customers or as suppliers and so they too may be at risk.
When the multiplier effect of the reduced income of a group of workers is taken into account, society at large in that locality may suffer if a firm goes in to liquidation after an uninsured loss.
If full consequential loss( loss of profit), insurance has been arranged in addition to the material loss cover, there may not be the need for even temporary lay- offs of workers following a major loss.
The aid which insurance provides in maintaining industry in an area stabilizes the economy of that area and in aggregate helps to stabilize the national economy through the continued sources of rates and taxes.
What are the other social benefit do you think the insurer can benefit from insurance company?