Archive March 2019

The Public Liability Insurance – Protection and Security for Businesses


We all know Murphy’s Law: Everything that can go wrong eventually goes awry! This also applies to company activities, services or products. And the company or the entrepreneur is personally liable for all damages that arise as a result. No matter whether people, assets or property are damaged – without a corresponding insurance cover the company or its owner is liable. That can quickly go into the tens of thousands of euros, if for example personal injury arose.

Here is an example from the files of a large German insurance company: A child crashes through a damaged stair railing that had built a craft business in the home. The child is disabled for life. The amount of compensation to be paid by the company amounts to a total of 950,000 euros, which consists of compensation for pain, house remodeling costs, medical treatment costs, etc.

Companies are liable like private persons – without liability limits


Businesses or entrepreneurs are liable like private persons without liability limits. This is what the Civil Code (§ 823 BGB) provides. Thus, with a large amount of damage, the entire company can easily be at risk – up to bankruptcy with all consequential damages for the owner himself as well as his employees who lose their jobs.

A public liability insurance is thus part of professional risk management by the management. It therefore belongs to every insurance company in its insurance portfolio. After all, insurance coverage does not only include the company as a legal entity, but also owners and employees are protected against compensation for their business activities.

What does a public liability insurance (BHV) do?

What does a public liability insurance (BHV) do?

A lot can happen when you are doing business. The damage totals can quickly go into the hundreds of thousands of euros, such as environmental or personal injury. This applies to start-up companies as well as established companies with several branches and a few hundred employees.

The BHV acts in the event of damage as a combined legal expenses and liability insurance. It first checks the claim for damages for its legality. If their experts come to the conclusion that these claims are justified, they will reimburse the claimant or the injured party up to the agreed insured sum. This may be personal, material or pecuniary damage suffered by third parties as a result of operational activities, services or products.

If the insurance company does not consider the claims for damages justified, it rejects the claims of the alleged victims. It takes over the costs for lawyers, appraisers or courts in case of litigation and thus offers the company the protection of a classic legal protection insurance.

Regular checks give security

Regular checks give security

Risk situations in companies change. In order to ensure that no false or underinsurance can develop over time, the following aspects should be considered:

  • Old contracts should be regularly checked for accuracy of fit. An adjustment of the public liability insurance by updating the insured risks with the previous insurance company can save considerable sums without reducing the insurance cover.
  • New contracts can not only provide tailor-made insurance protection but also significant cost optimization. A list of all insured risks also prevents conflicts with the insurance company in the event of a claim.
  • Sums insured must always be determined in such a way that all costs can be covered in case of damage without having to resort to own resources. This is especially true for start-ups and companies with high risk of damage.

During the consultation, management and insurance consultants jointly analyze the risk profile of the company and then determine the optimal sum insured. A professional insurance broker makes sure that the company gets its optimal insurance cover at the lowest possible price.


The First Loan for Free is a Time Trap?


The first loan is free, which is known to most of us, including advertising with the offer of Meybank addressed to new customers. It seems an interesting and at the same time a surprising proposition. Listening to the advertisements of this offer, probably more than one of you wondered what kind of parish have an interest in borrowing money for free. Certainly some of you also came to think that the first loan must have a catch for free.

How did it happen that the institutions known for providing horribly expensive loans introduced the offer, on which they do not earn? The first loan is not a free charity action, nor is a Christmas promotion. So what is it? What benefits does parabankes give you?

A way to acquire new customers?

It is certainly the way in which loan companies want, or rather try to win new customers. Just as everyone almost knows the time limits, they know their high costs. Therefore, acquiring a new client is quite a challenge for every parabank. The cost associated with taking advantage of the delay effectively scares away the majority of potentially interested.

The first loan for free is a time trap

The first loan for free is a time trap

Ask why? Well, free loans are advertised as being completely free and that’s the way it is. You borrow, for example, € 1000 for 30 days and after the lapse of time, it returns exactly the same as it borrowed, that is € 1,000. However, this is not a problem. The trap lies in the fact that the parabank counts on the fact that the borrower will not be able to return the money after 30 days. What happens then? The customer is forced to use the repayment service for another period, e.g. 30 days, but he must pay a fee for this. These are not small amounts, since the parabolas usually use the same fees when renewing, as in the case of the next loan, i.e. high. Most often they are in the amount of interest resulting from a loan, i.e. if we borrowed € 1,500 for 30 days and interest amounted to € 450, the same will cost a prolongation. There are also offers, where the interest payments on the loan amount are applied for extending the repayment for another period. Such a fee in this case may amount to over 30%, i.e. with a loan of € 1000 for the extension of the refund period, we will pay over € 300.

Situation without exit?

Of course, you can not pay your debt at all, but it is associated with even higher costs. This is no way because the lender will take the case to court. As a result, subsequent costs of court and enforcement proceedings will follow.

Count forces on intentions

With lower amounts of collected debts, we are not likely to face such situations, because we should pay back a few hundred zlotys without any problems. The problem can occur at higher sums. By borrowing, for example, € 2,000 per month, you need to be aware of the fact that in 30 days you will need to have 100% of the sum to return it. That is why it is so important to properly assess your abilities and not to borrow extensively.

Meybank earn money on clients!

Describing how the Meybank work, one word “how can not be done, how can I do it?” As you can see, the loan companies assumed that if it is difficult to get a customer interested in a loan under standard conditions, you need to find another way to get it. This is how the first loan offer was created for free. The client, who is encouraged by the lack of fees, borrows money for which he ultimately incurs the costs in the form of a payment for the prolongation of repayment for the next period. Therefore, it is safe to say that the first loan for free is a temporary trap.

Teachers’ loans: benefits for state employees

The INPDAP loans for teachers are now provided by the Public Employee Management of the INPS, the National Social Security Institute, which took over the credit services provided to the state by the former INPDAP, now closed. The transfer of responsibilities to the INPS implies that today teachers, like all other workers in the public sector , can apply to the Institute for funding. The advantage compared to loans available on the market is often constituted by convenient interest rates and more streamlined methods of accessing credit, such as the sale of the fifth.

This rate repayment formula provides for payment to be made directly through a deduction on salary or pension


Which can never exceed the threshold of one fifth of the monthly amount. This means that at any time during the loan term, the installment can never exceed 20% of a teacher’s salary . The advantage of this rate calculation mechanism is that the teacher will always know with certainty how much the payment will be, with the certainty that this will be sustainable compared to his monthly income.

The teacher who requests financing from the former management must present the last two pay slips


the CUD model and a copy of an identity document and tax code. The main requirement to be able to access the loan for state employees is to hold a permanent chair for at least two years . With this type of loan, a teacher can reach an amount of up to 60,000 euros, if his guarantees are solid. In this regard, the funding is also open to teachers who are approaching the threshold of retirement age.

As with all public employees , INPS also offers various financing solutions to teachers. In particular, there are two INPDAP loans for teachers that directly provide the INPS: the small loan , which works like a traditional personal loan and can last up to 5 years, and the multi-year loan, which instead is a finalized loan, ie requires that the amount is used for a specific purpose, specified at the time of signing the contract.