Everything you need to know about insurance

Business Insurance is a broad name for different coverage available to the business owner to protect against losses and to insure the continuing operation of the business. There are risks that, while they may rarely occur, are so destructive that it makes sense to plan ahead and manage the risk. Some business owners believe that since their business is profitable with a positive cash flow, they can take care of the disaster when it happens. They forget that if the business is not operating – there is no cash flow.

Will cover for accidental physical loss of, or damage to stock.

Will cover your manual accounts if they are destroyed by an insured peril, burglary or another insured event. Data should always be backed up and either removed from the premises at the end of each business day, or stored in a secure fireproof safe.

Will cover buildings and common property (boundary walls, entrance gates, security systems and irrigation systems) of Homeowners and Residents’ Associations against insured theft and damages. A sectional title owner is not obligated to purchase insurance, as it is the responsibility of the Directors of the Body Corporate to ensure that the association is insured.

Will cover Fire & Allied Perils, Theft, Loss of Rent and Property Owners Liability. The basis of establishing the sum insured is always on the current replacement construction cost and not what you can sell it for.

Will provide worldwide cover for equipment that is used away from your business premises (notebooks, laptops, cell-phones, etc.) or outside your structure (security cameras, etc.) Theft from unattended cars is not covered, unless there is forcible and violent entry to the vehicle.

Will cover financial losses due to the interruption of your business, as a result of a Fire & Allied Perils. You can cover financial loss relating to monthly fixed expenses; monthly operating profit; or any additional working expenses incurred. The amount of the Business Interruption Claim is established by applying the ‘Rate of Gross Profit’ to the Reduction in Turnover caused by the loss. You may also be covered for Interruption of Public Utilities (water and electricity), Public Telecommunications (telephone land lines) and Prevention of Access to your premises.

Will cover material damage and liability on any construction, installation on a site in your custody and control; where you supply or install goods.

Will cover damage to stock of all descriptions caused by a change in the controlled environment of the holding rooms, arising from indemnifiable damage to the insured machinery that creates the controlled environment.

Will cover accidental loss of, or damage to plant and machinery during the operations insured against. (dismantling, movement, loading, transit, offloading, storage, repositioning, re-erection, public liability and maintenance / guarantee). Cover can be limited to any, or all of the aforementioned and can be adopted to suit most applications such as exhibition or demonstration, etc.

Will cover computers, printers, modems, copiers, fax machines, PABX’s, cabling, software, security systems and any specialised electronic item. Theft must be subject forcible and violent entry to the building and is limited to you own premises only. It is important to note that loss as a result of wear and tear (deterioration), or mechanical derangement is not covered.

Will cover against employee dishonesty, computer fraud, extortion and fraudulent transactions and theft (not covered under the Theft section of your policy). The cover can either be on a ‘Named Employee / Position Basis’, or on a ‘Blanket Basis’ covering all employees. You can submit a claim up to 24 months after the incident, or if the employee has left the company, or if your facility is cancelled, you still have a 12 months grace period in which to submit a claim. Stock shrinkage and mysterious disappearance of goods which are never covered, in terms of Theft cover may be covered here.

Will cover losses as a result of fire, lightning, explosion, storm, wind, water, hail, snow, earthquake and impact. Plant, Machinery, Fixtures & Fittings, Contents and tenant improvements, Fire Extinguishing charges and Sprinkler Leakage can be covered. Tenant’s improvements must also be included as well as sprinkler malfunction cover if applicable. Special provision is made for refrigerated or frozen stock. The sum insured must be calculated at the new replacement value. Stock must be at the Cost Price to you (Raw materials, work in progress and finished products).

Will cover loss, or damage to your Stock while it is being transported locally by road, air or rail to and from the business by one of your cars, or third party carriers. You are covered in case of malicious damage (not theft), accidental damage, fire, explosion, theft (including hijacking) and temporarily stored in a locked facility. The Limit of Indemnity should represent the maximum value at risk, that you would have on any one conveyance at any one time.

Will cover financial guarantee for performance, stock or advanced payment.

Will cover the Section 21 Company formed to govern the common property. Directors & Officers Liability, Public Liability and material damage will be covered.

Will cover consequential loss of gross profit, loss of revenue, or increased costs of working, arising from indemnifiable loss or damage sustained under the Machinery Breakdown Policy.

Will cover sudden accidental and unforeseen physical loss of, or damage to machinery and plant arising from mechanical / electrical breakdown, whilst in operation, at rest, or during reciting or re-erection. Wherever you have machinery or plant, it is probable that sometime during the working life of that machine or plant something untoward will cause it to fail.

Will cover cargo from the time they leave the shipper’s warehouse, until they reach the consignee’s warehouse. Importers and exporters are exposed to countless financial risks and exposure from physical loss or damage, since carriers offer limited liability.

Will cover you against loss of money during normal business hours and after hours. You will have cover for loss of, or damage to money that are contained in a locked safe, or strong-room inside the building, outside your usual business hours. We’ll pay for loss or damage to money that was taken to, or from the noted address by an employee, or a professional money carrier. The Limit of Indemnity you elect should represent the maximum amount of money you would have at risk either at your premises or in transit to or from the bank.

Will cover damage to your customers’ vehicles either at, or away from your premises and your Stock of vehicles for fire and theft. You will be covered for any vehicle damaged whilst on the showroom floor, the garage or out on a test drive.

Will cover all contents within your office (excluding electronic items which must be insured under Electronic Equipment Insurance). The sum insured must be at replacement value and not the depreciated value. Theft cover is subject is limited to 25% of the sum insured and is subject to forcible and violent entry.

Will cover death, partial or total disability caused by accidental to business partners, or employees. You can either name the people or you can select the relevant departments (specifying the number of people per department). Medical Expenses may also be covered.

Will cover Plant damage and liability whilst in storage, transit, on any construction, installation, maintenance or repairs on a site in your custody and control. This can be extended to include hired goods.

Will cover against the unexpected cost of recalling a product, due to faulty design, manufacturing error, or intentional tampering (not caused or known by the insured) and that may cause harm to customers.

Will cover against any act of omission, negligence, error, omission in design, or advice given to a third party. Any business which designs, advises, consults, or works in an environment where an administration error or commission could potentially cause a loss to their clients, should take professional indemnity insurance. All engineers, project managers, architects, lawyers, doctors, dentists, brokers, valuators, assessors, surveyors, accountants, auditors and consultants should have this cover.

Will cover your Stock against theft. You cannot be under-insured, as you choose the sum insured that you feel is appropriate. The policy can also be extended to cover damage caused by thieves. Stock shrinkage and mysterious disappearance of goods are never covered.

Will cover international travel, Schengen visas and emergency medical assistance, in the event of an accident, including access to a 24 hour nursing helpline. Financial compensation covers you for missed connections, flight cancellations and inconvenient luggage delays.

Will cover impact causing loss or damage to the client’s own plant and machinery, to goods being manufactured, or to goods under the custody and control of the client.