Insurance
When an investor is considering starting an operation in Mexico and is addressing insurance and bonding needs, we recommend the following coverage:
I. Initial Stage; Before leasing or building a facility
Coverage:
- Tourist Automotive Policy (individual, fleet, blanket) This kind of policy provides the following coverage:
- Upsets and collisions
- Theft of vehicle
- Civil liability/bodily injuries
- Civil liability/property damage
- Medical expenses for the occupants of the injured vehicle
- Legal assistance and bail bond
- Full coverage a) to f)
- Limited coverage a) to b) to f)
- Performance bonds Bonds are required to ensure fulfillment of contractual obligations by the contractor when building a facility.
- Bid bonds
- Advance payments
- Builders risk Coverage
II. Second Stage; Installation and commencement of operations
- Installation and machinery moving (All Risk)
- Quality assurance bonds
III. Third Stage; Operations Start-up
- Property insurance
- Covered risks:
- Fire and/or lighting
- Explosion
- Hail and windstorm
- Aircraft, vehicles and smoke
- Snow and water damage
- Flood
- Strikes and vandalism, riots, malicious mischief
- Leakage of fire protection equipment
- Earthquake and volcanic eruption
- All Risk Includes all of the above and other coverage
- Covered risks:
- Consequential Losses
- Salaries and fixed expenses
- Loss of earnings
- Loss of rents
- Extra expenses
- Contingencies when applicable
- General Liability
- Premises and operations
- Tenant liability
- Products and completed operations
- Contractual
- Independent contractors
- Non-owned automobiles
- Tourist automobile liability
- Resident automobile liability
- Rented automobile liability
- Employer negligence
- Loading and discharging
- Pollution (sudden and accidental)
- Crime insurance
- Theft with violence and/or assault
- Money and securities
- Fidelity bonds
- Transit coverage
- Inland
- Ocean cargo
- Airfreight
- Contractors Equipment
- Machinery Breakdown
- Bailers and pressure vessels
- Electronic equipment
- Other
Each new investor must prepare a risk management analysis with the selected agent or broker, in order to properly design the most appropriate program.