Fires and their consequences
Fires in Poland
Since there has been no publically available and comprehensive database of fires in Poland which would give a good overview of large fires and fire losses in Poland POLIG has started its own database called FireMap.pl. The FireMap collects data and information from public sources. Fire and loss data can be viewed in a number of ways as map, tables and plots. Each identified fire entry includes links to public sources reporting the fire often discussing consequences for the business or the local community.
Fire consequences for people
- Loss of life or health
- Loss of job or source of income
- Deterioration of living conditions as a result of a large fire in the neighborhood
- Poisoning of plants consumed by humans and animals
- Groundwater poisoning in built-up areas
Fire consequences for business
- Loss of high-value assets (machinery, current assets, materials)
- Loss of property difficult to restore (computers, data, documents, archives, unique technical solutions)
- Loss of business continuity
- Loss of customers and contractors
- Loss of market position
- Impairment of the company’s stock market value
- Contractual penalties for failure to comply with contracts
- Loss of employees (dismissals or departures)
- The cost of employees’ salaries if they want to be held during a stop
- Court costs (disputes with the insurer, employees, contractors, surrounding entrepreneurs, residents, etc.)
- Costs of fire investigations
- The costs of cleaning the building after a fire
- Waste treatment costs
- Costs to restore the state of the environment
- Building reconstruction costs
- Damage to the building structure and maintaining the possibility of its further use
- Costs related to non-insurance and lack of Business Interruption insurance
- Large own contribution to the damage
- Low insurance amount in the contract
- Low insurance sum due to settlement with the insurer
- Higher insurance costs related to deterioration of insurance history
- Image loss costs
- Lowering business reputation as a brand, business partner, employer, borrower
- Difficulty accessing capital
- Difficulty attracting employees
- Reduced productivity and profits
- Logistic costs related to the use of alternative storage spaces
- Fixed costs that cannot be reduced (contracts, utilities etc.)
Fire consequences for society
- Interruption of public activity – education, health care, administration, culture
- Loss of jobs
- Loss of tax revenues
- Indirect impact on the surrounding area – enterprises, institutions, public facilities, inhabited areas
Fire consequences for environment
- Air poisoning, smog, carbon dioxide emissions
- Emission of toxic elements and substances eventually settling on the earth’s surface, such as HCN, HCl, heavy metals, dioxins
- Poisoning of groundwater, rivers, lakes.
Automatic Fire Suppression Systems
The formal term used in Poland for fire extinguishing installations is Fixed Extinguishing Devices (SUG). SUG are devices permanently connected to the facility, containing a supply of extinguishing agent, activated automatically in the early stage of fire development. SUG divide due to the extinguishing agent that is used in them (which are also associated with specific fire fighting mechanisms). In general, extinguishing media are water, foam, gas or powder .
Water installations are divided due to the main technology of the elements supplying water to the fire, as well as the mechanism and the area of extinguishing. In general terms, these are sprinkler, sprinkler and fog installations .
Types and types of sprinkler systems
Sprinkler installations (or parts thereof, i.e. sections) are divided due to the initial state of filling of the installation and the method of its launch into:
- Wet. They are constantly filled with pressurized water. In this installation, immediately after the sprinkler is started, water begins to flow through the sprinkler. This is the simplest and most common form of installation, which also makes it the most reliable. However, there are circumstances in which the use of such installations may not be appropriate. Such circumstances include low room temperature or the need for additional protection against accidental start-up. In these cases, the following two types of installation are used.
- Dry. They are initially filled with compressed air or an inert gas (nitrogen). After starting the sprinkler, the system quickly fills with water and after a certain delay, water begins to flow out through the sprinkler, and the installation now works analogously to a wet installation. These installations are necessary in places exposed to low temperatures (e.g. some warehouses) and thus freezing of water, which could damage the installation if water was present in the installation for a long time. Due to the delay resulting from the need to fill the installation, these installations require a larger operating surface.
- Preaction. These installations operate in conjunction with the fire detection installation, whose activation is an additional condition for starting and filling the sprinkler system with water. Such a double-connection combination prevents unwanted events, mainly accidental outflow of water in water-sensitive places (e.g. archives, museums, data centers) and unnecessary filling of the installation with water in places where this can be a problem (e.g. cold stores). These installations come in several variants and can be configured depending on the needs arising from the specificity of the building and the hazards present in it. The increased complexity of installations means that the cost of these installations is generally higher. The main variants of this installation are single interlock and double interlock .
- Single interlock . This installation is filled when the detection system detects a fire and from then on works in the same way as a wet installation. However, if the sprinkler first starts or another leak appears in the system, the system goes into alarm but does not fill with water. The purpose of the installation is therefore to quickly fill with water when there is a risk and to reduce the risk of water supply when the risk is not yet confirmed.
- Double interlock . This installation is filled with water when both events take place, i.e. fire detection by the detection system and sprinkler activation. Due to the delay in filling the installation, these installations should be treated in terms of operating surface as dry installations.
Types of sprinklers
Sprinklers are selected according to the hazards they are intended to protect. There are many types and types of sprinklers. The basic criteria for their division are described below.
- Application. Due to the use, sprinklers can be divided into those that are usually used in production and warehouse buildings and those that are used in other buildings, e.g. public buildings. A separate category in terms of the use of residential sprinklers are / the resident (ang. Residental sprinklers ).
- Location. In terms of sprinkler location, sprinklers used as ceiling, shelf (storage) and wall can be distinguished.
- Orientation. Ceiling sprinklers are divided into vertical and hanging, standing, which also means the initial direction of water outflow. Wall sprinklers have a horizontal orientation.
- Stream shape. Classic, spraying, flat, wall mounted
- Thermosensitive element . Ampoule, fuse link
- Temperature class. Activation temperature
- Sensitivity. It is determined by RTI. RTI <50 rapid response, 3 mm ampoule, RTI 50 – 80 special response, 4 mm ampoule, RTI> 80 standard response, 5 mm ampoule
- Water quantity and droplet size. K factor, droplet size, EFSR, CMSA
- Housing and finish. Recessed , Flush, Concealed , Decorative
- Special applications. Windows, water-foam, sauna, attic, prisons, hidden spaces
- Installation and sprinkler protection. Impact, corrosion, freezing, seismic
Sprinklers, sprinkler network, control and alarm valve, pump, tank
Installing sprinklers are also known as flood (ang. Deluge systems / spray systems ). Unlike sprinkler systems, these installations are characterized by the fact that the sprinkler nozzles are open all the time there and there are no triggering elements, and thus all nozzles supply water simultaneously (in groups). The installation is activated by fire detection by the detection system or manually. Installations sprinklers are used in areas in which you must reckon with the rapid spread of fire. In addition to rooms, sprinkler systems are also used to protect equipment, tanks, silos, transport systems, cable tunnels, transformers, waste recycling sites, etc.
Water Mist Systems
These installations use additional fire extinguishing mechanisms of the ground water to very small droplets. Thanks to this, it is possible to receive heat more efficiently and inertize , i.e. volume displacement of oxygen from the area around the operating fog nozzle (which is generally a feature of gas installations). The main advantage of fog systems is the much smaller amount of water consumed compared to sprinkler systems, which can translate into less water damage in the building. The list of water mist applications is constantly growing, but it should be noted that, unlike the commonly known and used sprinkler systems, water mist installations must be used in strictly investigated cases supported by physical tests that take into account the specificity of the protected object. Water mist installations are available in low and high pressure variants. The source of pressure in the installation can be pumps or gas tanks (nitrogen).
Benefits of Fire Suppression Systems
People, health, society
Fire-fighting installations significantly increase the safety of people in buildings
- Thanks to the quick extinguishing of the fire or its significant inhibition, people in the building have much more time to leave it safely, thanks to which they are also much less exposed to toxic smoke.
- They are particularly recommended in buildings where evacuation and rescue and fire-fighting operations are difficult due to:
- the height of the building (or the depth of the underground floors), which complicates the evacuation and operation of the fire department and makes them much more dangerous.
- a large number of people and the risk associated with long evacuation times (e.g. large entertainment venues)
- a large building area, its complexity and poor user orientation (e.g. shopping centers).
- risk of rapid fire development (e.g. large stores, production and warehouse buildings)
- the ability to sleep people, which delays the evacuation (e.g. hotels, boarding schools, although increasingly also residential buildings)
- the state of health of persons staying hindering their evacuation (e.g. hospitals, nursing homes)
- long time of arrival of the fire brigade
- Fire-fighting installations also protect:
- rescuers firefighters who do not have to conduct operations in extremely difficult and therefore risky conditions and as a result not necessarily effective
- Bystanders and people living in the vicinity of buildings covered by fire
Fire-fighting systems significantly reduce the risk of catastrophic effects of a fire on the activities carried out in the building
- Business activities (e.g. office buildings, shops, hotels, production and warehouse buildings)
- Activities of great importance for the local community (e.g. schools, hospitals, cultural facilities, public administration, monuments)
Fire-fighting installations significantly increase the business resilience of companies and organizations.
- Lower risk of large losses
- Protection of high-value assets (machines, current assets)
- Protection of property difficult to reproduce (computers, data, documents, archives, monuments)
- Protecting business continuity
- Protection of customer base and market position
- Protecting the company’s stock market value
- Protection of the building structure and maintaining the possibility of its further use
- Reducing the risk of default
- Avoiding many fire-related costs, often not covered by insurance:
- lawsuits, especially in the event of loss of health or life or in the event of a dispute with the insurer
- fire investigations
- cleaning the building after a fire
- Bankruptcy prevention (the fate of around 60-70% of companies after a large fire, according to UK data)
Installations significantly support the business activity
- Savings due to the use of regulatory relaxation, greater architectural freedom, functionality and flexibility in building design and extension
- Higher building height (water firefighting systems are necessary in high-rise buildings> 55m)
- Larger open spaces in the building (thanks to greater limits for fire zones)
- Better use of building plot (due to shorter distance between buildings)
- Lower cost of building construction (due to lower fire resistance class)
- Optimization of escape routes (due to longer escape routes, which affects the number of staircases and associated costs)
- Lowering the amount of water to extinguish fires externally
- Necessary equipment of the building in the eyes of demanding tenants and users (e.g. hotel, logistics center)
- Investment in the future (much cheaper at the design stage)
- Often chosen by companies that have experienced a fire in the company
- Significantly better insurance situation and insurance conditions
- In the eyes of insurers, this is a desirable risk, which results in their increased interest and, as a result, a more competitive insurance offer
- Installation is often a prerequisite for insurance
- Lower premiums
- More favorable limits (deductible in the damage and maximum compensation amount)
- Access to a wider range of insurance products
- Access to profit loss insurance (Business Interruption )
- Maintaining a good insurance history
- The extinguishing installation can improve the company’s image and increase its credibility
- Increasing business credibility
- In the eyes of financial and credit institutions (which often treat it as a loan condition)
- Among the key business partners (large entities often have such a condition of cooperation, e.g. IKEA)
- Among contractors and clients (e.g. some countries and companies do not allow employees to stay in hotels without a fire extinguishing system)
- Is an important advantage when selling a building
- Highlights the company’s commitment to protecting the environment and the building’s surroundings
- It avoids a catastrophic impact on the environment in the event of a large fire and a negative PR effect
- It emphasizes care for employees and stability of jobs and employment
- Increasing business credibility
Building and Architecture
Fire extinguishing systems help achieve architectural and functional goals
- Larger open spaces in the building (thanks to greater limits for fire zones)
- Better use of building plot (due to shorter distance between buildings)
- Less massive building construction (due to lower fire resistance class)
- Optimization of escape routes (due to longer escape routes, which affects the number of staircases)
Fire extinguishing systems significantly reduce the environmental impact of a fire by reducing the size of the fire and avoiding a catastrophic fire in the entire building.
- The emission of toxic substances to the atmosphere and in the immediate vicinity of the building covered by fire is minimized
- Emissions to groundwater of toxic contaminated fire extinguishing water are minimized
- The amount of waste is limited, which may end up in landfills in the event of improper disposal
Facts and myths
- Sprinklers start automatically in response to a rise in temperature around the sprinkler
- Sprinklers do not respond to smoke caused by e.g. cigarette or burnt toast
- Each system sprinkler reacts to heat individually, so only those closest to the fire start
- Sprinklers do not start all at once (as opposed to what you sometimes see in movies)
- In fact, 80% of fires start with one or two sprinklers, because more sprinklers are not needed to control the fire in its early stages.
- There are virtually no fatalities in buildings equipped with sprinklers
- No human intervention is required to operate the sprinklers
- Sprinklers extinguish a fire completely or reduce its size by keeping it easy to put out by building staff or fire brigade
- Sprinklers significantly reduce fire losses and damages, as well as smoke damage, because a much smaller fire emits much less smoke, which means minimizing the amount of toxic substances resulting from combustion
- Sprinklers use much less water than the fire brigade (several dozen to several hundred times less), thus limiting the damage caused by water and the resulting amount of contaminated firefighting water
- Sprinklers also act as a fire detection and signaling system, because the operation of sprinklers also activates a loud alarm that notifies building users about the start of the installation and notifies the fire department
- Sprinkler installations are the most reliable type of fire protection installations with 94-99% reliability (depending on the country and the way the test is carried out)
- Sprinklers will always do their job (provided they are not painted over and the main valve is not closed) so that the installation can supply water at the right pressure to the fire at any time.
- Sprinkler installations are not demanding in terms of operation and maintenance – keeping them ready usually requires only simple annual inspections
- Sprinklers do not affect the aesthetics, and in the case of more demanding spaces, hidden sprinklers can be used
- Installations are on watch 24 hours a day, 7 days a week, ensuring the owners of the facility a sense of peace and security
- Sprinklers start with smoke – not true. Fire sprinklers do not respond to smoke, dust, vapors, aerosols and are therefore resistant to false alarms.
- Sprinklers start up accidentally – not true. It is extremely rare for a properly maintained sprinkler system to accidentally discharge. Statistical data indicate that the possibility of accidentally starting a sprinkler is about 16 million to one. You have a better chance of hitting the meteor.
- Sprinklers start all when one starts – not true.
- Sprinklers are unreliable – not true
- Sprinklers are unsightly – not true. Sprinklers can be easily retracted into the ceiling, recessed and masked with a cover that is soldered to the sprinkler at three points. After exposure to heat from the fire, the cover drops and the sprinkler is exposed and may work.
- Sprinklers are expensive – not true. The cost of installation depends on many factors. In general, however, this represents a small percentage (1-3%) of the total cost of the building. On average, in an industrial building, the cost of installation is 150-200 per square meter, but to achieve a lower cost, sprinklers must be planned at the design stage. In general, the cost of installation increases with fire risk, and decreases
- They are expensive to maintain – not true
- They can only be installed in new buildings – not true. Sprinklers can be installed in almost any type of building – including historic ones.
- Water-related losses are greater than fire losses – not true. The sprinkler system prevents large fires by stopping or extinguishing the fire before the fire department arrives. By inhibiting or extinguishing a fire in the bud, not only is water damage caused by sprinklers minimized compared to damage caused by fire, but also sprinkler water damage will be much less serious than damage caused by large amounts of water fed from fire hoses.
- The water in the installation can freeze and tear the pipes – not true. Sprinkler installation standards include a number of measures that can be used to prevent low temperatures from affecting the operation of sprinklers in the event of fire.
Suppression systems and fire ventilation
[to be extended]
Suppression systems and insurance
Fire-fighting installations are one of the possible elements of the building protection strategy. Their use in the vast majority of cases leads to a reduction of fire risk. [Extend].
- Insurance broker. An independent intermediary between the entity intending to insure (Policyholders) and Insurers (Insurance Companies). He acts only in the name and in the interest of his client. Sometimes referred to as an insurance lawyer. The insurance broker is subject to entry in the register of insurance brokers kept by the Polish Financial Supervision Authority. The activity of the insurance broker is regulated by the Act of May 22, 2003 on insurance mediation.
- Insurance agent. Intermediary between the Insurer (Insurance Company) and the entity intending to insure (Insurer). He acts only in the interest and for the benefit of Insurers with whom he has signed agency contracts. Agents are subject to entry in the register of agents kept by the Polish Financial Supervision Authority. The agent’s activity is regulated by the Act of May 22, 2003 on insurance mediation.
- Multiagent. An insurance agent performing agency activities for more than one insurance undertaking within the same insurance department. He is responsible for the damage caused by the multiagent due to performing agency activities. He also has an obligation to insure his civil liability towards persons to whom he may cause damage by his actions or omissions.
- Brokerage. Broker remuneration (broker, broker, etc.) for help with buying or selling. In practice, the Polish insurance market is the remuneration of an insurance / reinsurance broker for placing a specific risk at the Insurance Company, paid by that company as a fixed percentage of the insurance premium.
- Own contribution and franchises. Contractually specified amount or percentage limits on compensation paid. Basically, there are two types of them, i.e. integral franchises and own shares in damage – the latter also called reduction franchises. Integral franchises are characterized by the fact that the insurance company does not start insurance against damage up to a certain amount in order to eliminate minor damage from liquidation services, where the cost related to conducting the liquidation proceedings (working time of the representative of the insurance company – the liquidator, the cost of its travel, the cost of preparing documentation) would exceed the value of the damage itself. Own shares (reduction franchises) are usually specified as a percentage, e.g. 10% in each damage, or less frequently in amounts, e.g. EUR 500 or PLN 5,000 in each property damage. Offers also include mixed terms for franchises, e.g. 10% in every damage to property, but no more or not less than PLN 2,000. The deductible franchise limits the compensation paid under the principles set out therein and is mainly intended to motivate the injured party to increased diligence and care for their assets, because in the event of its loss the insurance company will not compensate for the damage in full and will reduce the compensation by the value of the franchise agreement, which will charge the victim. Contrary to integral franchises, usually own shares (reduction franchises) can be bought, i.e. the plant will be responsible for all damages, but this is connected with the need to pay an additional premium.
- Kulancy. Benefit paid by the Insurer in a situation where he is not sure about liability for damage. The culinary payment is made to avoid the costs of a lawsuit and image losses related to the refusal to pay the benefit and later possibly to a lost process. A culinary claim cannot be pursued in court. The Insurer’s decision cannot be appealed. Awarding a culinary benefit does not mean that the Insurer accepts liability under the given contract. There are two types of clarity : a) dispensational – the policyholder commits certain violations of the insurance conditions, which results in the loss of the right to the benefit, e.g. in grossly negligent violation of the obligation to take care of the insured property. In this case, the Insurance Company may exceptionally disregard these violations and pay the benefit in full or in part; b) marketing – the Insurance Company provides exceptional protection, guided by marketing motives, e.g. to advertise its reliability in the eyes of all Policyholders or other reasons related to a given Policyholder, e.g. fear of losing a long-term, attractive Customer.
- Normal loss (NLE – Normal Loss Expectancy ). Damage expected under normal conditions when all the fire protection devices used are present and activated. This damage is expected after applying the insurer’s recommendation.
- Probable loss (PML / MPL – Probable Maximum Loss ). Damage expected in the event of partial failure or ineffectiveness of the applied fire protection.
- Maximum damage (MFL / EML – Maximum Foreseeable Loss). Damage expected in the event of complete failure or ineffectiveness of the applied safeguards and firefighting activities of the fire brigade, which is usually associated with complete burning of the building or its part separated by properly made fire separation walls. The spread of fire to neighboring buildings can be stopped by sufficiently wide lanes.
- FLEXA insurance. The term adopted in Polish insurance practice denotes the basic scope of property insurance, defining strictly defined elementary risks covered by insurance. It was created as a result of combining the first letters of English names of basic risks including: fire – Fire, lightning – Lightning , explosion – Explosion , aircraft crash – Aircraft crash landing .
- EC (Extended Cover ) insurance. The term used in insurance of property against fire and other random events indicating the extended scope of coverage of insurance risks . Found in insurance practice in connection with the term FLEXA (see: FLEXA). Extended Cover allows you to modify the narrow scope of insurance coverage in the insurance contract by including an additional premium for a fee against such risks as: hail, vehicle hit, hurricane, flood, avalanche, landslide, water damage. Insurance protection based on the FLEXA + EC principle is characterized by strict definitions functioning in general insurance conditions.
- CWAR (Contract Works All Risks) insurance. Insurance of all risks related to the contract. It belongs to the technical insurance group. It is a combination of CAR (insurance for all construction risks ) and EAR (insurance for all assembly risks ) and applies to investments that combine construction and assembly work. The scope of insurance covers all risks, except those expressly excluded in the general insurance conditions. Insurance protection may be granted to e.g. investor, contractor, subcontractor.
- CAR (Contractor’s all risks) insurance. Insurance of all construction risks . It belongs to the technical insurance group. It covers insurance coverage for losses and damages that may arise during construction. CAR insurance consists of two sections: property and civil liability insurance. Insured can be entities involved in the project, e.g. investor, contractor, subcontractor. The scope of insurance can be limited or extended using clauses specially designed for this insurance.
- ALOP (Advanced Loss of Profits) / DSU (Delay in Start Up) insurance. Insurance of loss of the investor’s profit as a result of damage covered by construction and assembly insurance. Belongs to the financial insurance group. The conclusion of this insurance is conditional upon the conclusion of the insurance risks of building or insurance risks mounting. There are ALOP / CAR – investor profit loss insurance as a result of damage covered by construction risk insurance and ALOP / EAR – investor profit loss insurance as a result of damage covered by assembly risk insurance . The insurance protection covers the loss of the investor’s gross profit in the event of a delayed transfer of the investment for use in accordance with its intended purpose, provided that this delay is the result of damage to contract works that resulted from any reasons not expressly excluded in the general terms and conditions of insurance.
- BI (Business interruption ) insurance. Profit loss insurance. Belongs to the financial insurance group. The conclusion of this insurance is conditioned by the conclusion of property insurance against fire and other random events or property insurance against all risks . Insurance protection covers the loss of the company’s planned gross (insurance) profit in the event of a disruption or interruption in operations due to damage covered by property insurance.
- MLOP insurance (Machinery Loss of Profit). Profit loss insurance as a result of damage and destruction of machines. The conclusion of this insurance is conditioned by the conclusion of insurance against breakdowns (including damage insurance). Insurance protection covers damages consisting in the loss of the company’s planned gross (insurance) profit as a result of a break or disruption in operations, resulting from a sudden and unforeseen failure of machines, lines or technological lines due to any reasons not expressly excluded in the general insurance conditions.
- EAR (Erection all risks) insurance. Insurance of all assembly risks . It belongs to the technical insurance group. It covers insurance coverage for losses and damages associated with the assembly, testing and commissioning of machinery. EAR insurance consists of two sections: property and civil liability insurance. Insurance protection may be granted to e.g. investor, contractor, subcontractor. The scope of insurance can be limited or extended using clauses specially designed for this insurance.
- Overinsurance. Insurance above the value of the insured property (property interest). In the event of damage, the insurance company will pay compensation within the real value of the lost or damaged property, its book value or according to the actual new value depending on the system adopted in the contract. The insurance company can be expected to return the overpaid premium.
- Underinsurance. Insurance below the value of the insured property. In the event of damage arising from uninsured, the standard compensation is proportional to the sum insured and the actual value of the property. Practically speaking, in the event of damage, the payment of compensation depends on the ratio of the sum insured to the actual value of the property (the principle of proportion) or in some cases corresponds to the amount of damage, within the sum insured (first risk principle).
- Supplementary insurance. Restoration of the sum insured after damage.
- The maximum compensation period. The anticipated period of interruption or disruption in business activity set out in the insurance contract, which the Insurer protects with the BI policy. This period is independent of the insurance period and begins on the day of the interruption or limitation of activity due to material damage. It usually lasts from a few to several months.
- Adaptation expenditures. The value of outlays incurred by the Insured for general and adaptation repairs and finishing of rooms or buildings not owned by him, and occupied by him as a subsidiary (rent, use, lease), aimed at adapting to the needs of the Insured’s business, or raising their standard.
- Coinsurance. A special form of insurance contract. It involves joint insurance of larger risks by two or more Insurers. Insurers’ liability is spread as a percentage of the sum insured. Most often in the case of co-insurance, one of the Insurers plays a leading role, i.e. insurance is concluded on its terms, it negotiates the contract, etc. Co-insurance can have a positive impact on the premium due to the fact that the risk is spread over several entities.
- Liquidation of damage. A number of actions taken and performed by the insurance company to determine the causes of damage and liability for damage, as well as to determine the amount of compensation / benefit due to an authorized person.
- Underwriting. All activities performed to assess and accept (or reject) the relevant insurance risk conditions.
- Insurance premium. The sum of money due to the insurer for the insurance cover provided by him. From an economic point of view, the insurance premium is treated as a payment (price) for the insurance cover provided.
- Insurance sum, guarantee sum, limits. The amount specified in the insurance contract constituting the upper limit of the liability of the insurance undertaking. The upper limit to which the insurance undertaking corresponds, which is the maximum amount of compensation that can be paid out of a particular insurance, is defined by the sum insured, otherwise known as the limit of liability or the sum insured.
- Premium rate. Tariff rate expressed in percentages or percent of the sum insured or another calculation basis (turnover, payroll fund). The premium rate usually applies to one year.
- Sum of insurance. The sum of money insured for property, health and life. In property insurance, the sum insured is usually the upper limit of the insurer’s liability and should in principle correspond to the current value of the insured property. However, the sum of personal insurance is determined in practice on the basis of the approximate value of needs that may arise as a result of a random accident.
- Insurance Clauses. Reservations, additional regulations in the insurance policy that may limit, extend or change the scope of insurance coverage. They often contain provisions of a preventive nature.
- Insurance sum sub-limits. Percentage of the value from the basic sum insured (guarantee sum) under which certain categories of damages are compensated, e.g. losses in cash and other means of payment, bearer securities or in electronic equipment, etc. Sublimits are usually introduced for categories of damages where the risk of their occurrence is elevated.
Sources of knowledge