Corporate Insurance

The biggest determinant of whether the current account is in a surplus or deficit is a country’s trade balance. During a strong economic expansion, import volumes typically surge and, if exports are unable to grow at the same rate, the current account will be in deficit. Conversely, during a recession, the current account will show a surplus if imports decline and exports increase to stronger economies. Exchange rates are another variable that can impact the current account.

Blanket honesty bonds, also known as commercial blanket bonds, protect employers from losses due to dishonest acts of employees. That makes it a type of employee dishonesty bond. The bond’s main benefit is that it prevents small companies from going bankrupt due to a single employee's dishonesty.

A business can be forced to close in the wake of a natural disaster or other life-threatening event. Property insurance often covers lost income while a business is closed due to property damage, but doesn't always contain provisions that protect a business that is unable to reopen after an evacuation. A civil authority clause in an insurance policy outlines whether or not lost income will be reimbursed when a government entity denies access to covered property.

As well as PR incidents—the arrest of a prominent board member—and international threats—customer data breaches or computer network invasions—crisis management coverage is also used to cover expenses related to restoring confidence in the security of the insured's computer system in the event of a cybersecurity or data breach. It also covers reputational threats such as product contamination or recall, terrorism and political violence, natural disasters, workplace violence, and adverse media exposure.

Properties covered by a business owner policy, or BOP, typically include buildings that are owned or rented; additions or additions in progress; and outdoor fixtures. The policy will also cover any business-owned items or any items owned by a third party but kept temporarily in the care, custody or control of the business or business owner. The business property must usually be stored or kept in qualifying proximity of business premises (such as within 100 feet of the premises).

Valuation reserves are calculated using an asset valuation reserve and an interest maintenance reserve to separate valuations in equity versus interest gains and losses. These reserves are mandatory under state law to protect against the natural fluctuations in the value of investments.