Business Insurance can get very involved and depending on the type of business you have and the cover you require - many find it very daunting. What business insurance should you take?
Below is a "Brief Summary of Sections" to help you understand the complexity of it all.
FIRE - Covers buildings and contents belonging to a business for which it assumes responsibility. Cover against fire, lightening and explosion. Dangers such as earthquakes, storm damage, leakages, earth moving and malicious damage are not automatically included and must be indicated if required. Goods in the open that are not normally stored or kept in buildings must be indicated as such on your business insurance policy.
BUILDINGS COMBINED - Coverage as above, plus for earthquakes, storm damage, accidental damage to sanitary ware, theft with forced and violent entry, loss of rental and general liability to R1 million is included.
OFFICE CONTENTS - Where a separate office or office complex is used, the contents of such premises are covered against standard risks. Damage to documents is included and theft coverage is available as an option. Make sure that rented office equipment is also included in the insured value under this section. Note: Electronic Equipment is not covered under this section.
BUSINESS INTERRUPTION - Covers the business against loss of gross profit due to an event or damage to property that has been insured under the fire section. This insured value is calculated according to the previous year’s gross profit and linked to the period of time it would take the business to become fully operational again. The period of coverage will depend on factors such as the type and availability of machinery and/or builders. Normally the time offered (you select) is 3, 6 or 9 months.
ACCOUNTS RECEIVABLE - Covers loss or damage to the business’ books or records and the cost involved in recovering data after an event.
THEFT - Coverage under this section is normally subject to certain safety requirements. It is important that the extension for malicious damage appears under the fire section of the policy. Coverage is usually on a first loss basis, in other words the damage that can occur at any given moment. Must be violent or forcible entry.
MONEY - Business Insurance allows you to cover all cash and negotiable securities at the premises as well as in transit, for an agreed amount. The special conditions regarding money in transit are vitally important and may differ from one insurer to the next. Seasonal Extension must be requested if needed.
GLASS - Unlike household policies, damage to glass is not automatically included in buildings for commercial purposes, but have to be insured additionally and for the full value of all glass, mirrors and signwriting.
FIDELITY GUARANTEE - Provides coverage for theft or fraud by employees.
GOODS IN TRANSIT - Covers all items that belong to a business and where the transit of such items falls under its control and items are transported to or from any place. Calculated on Annual Carry and Maximum Per Load.
BUSINESS ALL RISKS - All high risk items that are normally carried about for the purposes of the business (such as cell phones, laptops), must be specified under this section. The coverage is worldwide.
ACCIDENTAL DAMAGE - Covers any accidental, physical loss or damage to insured property that cannot be insured otherwise. Sometimes extraordinary events happen like the collapse of shelving.
PUBLIC LIABILITY - Indemnifies the business against claims for accidental death or injuries; losses or damage to tangible property caused by or arising from the business’ activities. Workaway Extension can be included if requested / needed. Products Liability Extension is of critical importance to all businesses manufacturing, supplying, selling and importing or exporting products and Defective Workmanship is another Extension available.
EMPLOYERS LIABILITY - If the business can be held legally accountable for the death of, or bodily harm to any employee. Do you need cover for your business in the event that one of your staff members claims they've suffered an illness or injury as a result of working for you?
STATED BENEFITS / GROUP PERSONAL ACCIDENT - Coverage for bodily injury or death caused in an accidental, violent, external and visible manner to any partner, director or employee of the business. Stated benefits coverage is expressed as a percentage of earnings instead of a fixed amount as with Group Personal Accident. In the case of a claim the business and not the particular individual is paid out as the insured party.
MOTOR - Three coverage options – Comprehensive, 3rd Party Fire & Theft and 3rd Party only. Liability towards passengers is a standard inclusion, but an extension on an open vehicle is available as an option. It is important that rented vehicles, especially forklifts also be insured under this section, unless stipulated elsewhere.
Motor Traders is for Car Dealerships & the Motor Trade Industry can request to have: External –for vehicles whilst on the road or temporarily garaged elsewhere. Internal – for vehicles whilst on the insured’s premises
ELECTRONIC EQUIPMENT - Provides coverage for physical loss or damage to such equipment, for example lightning damage to computer equipment. Items are also covered in transit.
MACINERY BREAKDOWN - Covers machinery and equipment against the cost involved in accidental and mechanical breakages. The trend is to cover only large and expensive installations. The insured value is the full replacement value of the particular piece of equipment. Deterioration of stock can be included where stocks are damaged as a result of a loss described above.
Do I really Need Business Insurance?
Businesses need business insurance because it helps cover the costs associated with property damage and liability claims. Without business insurance, business owners may have to pay out-of-pocket for costly damages and legal claims against their company. Get a FREE Quote now.
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