In any industry, especially transportation, it is essential for the owner of a business to understand how much it costs per mile to operate his vehicle, trucks or fleet. The formula looks simple and in reality it is; but you must understand the underlying elements to truly appreciate and comprehend the calculation.
Property insurance covers the real estate, the associated facilities, equipment, and inventory from damage (fire, hail, accidents and water). Although not mandated by law, it is often a required form of insurance as a term in a loan or financing agreement. Property insurance is one of the more common forms of insurance carried by business.
Insurance is a risk reduction tool used in our private and business lives. It is founded on the basic premise that a large group of individuals will cover a catastrophic event for one of the members sometime in the future. In general, the insurance company uses actuarial science (law of large numbers) to calculate the financial cost of accidents over a given period of time.