As a business owner you are faced with a million things you need to do on a daily basis. Trust me, I feel your pain because I’m in the same boat. One of the crucial things you want to put to bed as quickly as possible is your Commercial Insurance. The idea is to know what risks your business faces and what types of insurance cover you can take out to cover those particular risks. Naturally, the risks that can cripple your business need to be addressed first.
In this blog post I’m simply going to jot down the 20 cover options available under a standard Multi Mark 111 commercial insurance policy ( So you know what they are). In later blog posts I will delve deeper into the individual covers on a one on one basis. Please note this is simply a list of the standard cover options with a brief summary.
Ok, so this insurance section is one of the really important cover options. It doesn’t only cover your property against fire, but also explosion and lightening. The cover extends further and can include amongst other perils, damage as a result of earthquake, storm, wind, hail and snow.
2. Office Contents Insurance Cover
Pretty standard. This section covers your office property (like desk,chairs, filing cabinets, documents etc) against loss or damage as the perils covered in the fire section. Note however that electronic equipment is not covered under this section. We will handle that later.
3. Buildings Combined
This insurance section is covering your building, walls, gates, landlords fittings, driveways. Under this policy section you can also claim loss of rent and legal liability. Basically this is insurance for landlords and property owners!
Concerned about a break in? This is the insurance cover you need. Under this insurance section you are covered against loss as a result of theft (naturally it needs to be accompanied by forcible entry)
5. Business Interruption
If your business stops operating and your profits go for a ball of k#@k, you’ve got serious problems. I’m taking about the type of problems that can shut you down for good! Under this insurance section you can protect yourself against that eventuality (same perils as the fire section)
6. Accounts Receivable
Your accounting records hold a ton of value and without them you’ve got issues. Under this insurance section, insure against the loss of your accounting records which leaves you unable to trace the debit balances that are due to you.
Pretty self explanatory. You can inure against the loss or damage to cash, bank currency, cheques, money orders, card vouchers, for which you are responsible.
How much would it cost you to replace your shop front window? A pretty penny I’m sure. Under the glass section of a commercial lines policy you can insure against loss or damage. What type of glass does it cover? Internal and external glass, mirrors and sign writing.
If you run the risk o f having employees steal from you, this is the insurance section you should be interested in.
10. Goods in Transit
Again, pretty self explanatory. Under this insurance section you protect yourself against the risk that your goods get damaged or stolen while in transit by road, air, sea, or rail.
11. Business All Risks
Just like the “out and about” section of your personal car and home insurance policy, this insurance section covers business goods that aren’t on your premises against loss or damage. An example being your Garmin GPS.
12. Accidental Damage
Covers accidental damage to your property.
13. Public Liability
This is a big one. Liability cover is very important if you run your own show. Under this section you are covered for legal liability for accidental death, bodily injury, illness or physical damage to property which has occured during the normal course of business. A few other extensions are available, Defective Workmanship, Work Away, Products Liability.
14. Employers Liability
Covers you the employer against legal liability if your staff suffers bodily injury, illness or dies while under your employment contract.
15. Group Accident
The company nominates the employees it would like to cover within the business and if any of them have an accident (bodily injury caused by violent, external means) you can claim.
This is the section under which you insure your motor vehicles. Enough said really.
17. Electronic Equipment
All electronic equipment including computers get insured under this section of the commercial insurance policy. So, if you had an office, the desks, chairs, filing cabinets etc would fall under the “office contents section”, the computers, fax machines, servers would fall under the “electronic equipment” section. Notably laptops (which leave the premises) are often insured here.
18. Machinery Breakdown
Covers you against any unforeseen and physical damage to your machinery. Again, pretty important stuff if you are reliant on your machinery to drive your business.
19. Deterioration Of Stock
Under this section your insure against the loss or damage to your property (stock). An example? Perhaps your run a restaurant and your fridge bombs out and as a result you lose R10 000 in stock
20. Stated Benefits
Very much like the group accident benefit you can insure your staff against bodily injury. Become permanently disabled while at work and claim 100% of the stated benefit (what ever sum insured you decided)
Ok, that’s it. If you knew nothing about commercial insurance, at least now you know what you can cover yourself against if you run your own business.
This type of stuff can get tricky, so always look for a good broker.
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The InsuranceFundi Team
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