1 66 MANAGEMENT OF DAIRY PLANTS 



or the underwriter, the other party to the contract is called the 

 insured, the written contract is called the policy, and the event 

 insured against, the risk. 



I. Fire Insurance. — Fire insurance is a contract whereby 

 the insurer indemnifies the insured against fire risk. This form 

 of insurance should be carried at all times and in such amounts 

 that not merely the building, machinery, and equipment are 

 insured to their full value, but the stock of merchandise on 

 hand should also be fully covered. If the business transacted 

 is of such a nature that the stock of merchandise carried on 

 hand is of much higher value at one season than at another, 

 then it is usually advisable to add additional insurance to apply 

 only for the season while the stock is of greatest value. 



It is the duty of the insured to give immediate notice in 

 writing of fire loss to the insurance company and within 60 days 

 after date of fire render an itemized statement of losses sus- 

 tained to the insurance company, this statement to be signed 

 and sworn to by the insured. 



II. Employer's Liability Insurance. — Employer's liability 

 insurance is a contract whereby the insurer indemnifies the 

 insured against liability for accidents to employees. While 

 such accidents are seldom heard of in the smaller plants they 

 are rather frequent in larger manufacturing establishments. 



in. Fidelity Insurance. — Fidelity insurance is a contract 

 which protects the employer against loss by the fraud or dis- 

 honesty of his employees. This contract is usually known as a 

 bond. It is to be recommended that any employee handling 

 any of the company's money furnish a bond issued by some 

 reliable fidelity insurance company. The company for which 

 the employee works should pay the premiums on such bonds. 



In addition to the above forms of insurance there are many 

 others such as steam-boiler insurance, plate-glass insurance, 

 credit insurance, etc. 



IV. Insurance Records. — The manager should have some 

 convenient method by which to know the amount of insurance 

 carried on the different lines of property, and the date when the 

 contracts expire. Form XV may answer for that purpose. 



