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Property Insurance
Almost everything in the office is covered, including EDP equipment.
We provide cover for fine art and valuable papers. Valuable papers include documents, stamps, business books and writings of every description.
We provide cover for tenants improvements. This means fixtures, alterations, installations or additions to a building occupied but not owned by the insured, made at the expense of the insured and which cannot legally be removed. E.g. Mahogany panelling
We provide cover for glass including the undamaged parts of glass.
If the insured is the owner of the building then building insurance is required.
We provide cover for property entrusted to the insured during conveyancing and contingency cover where current insurance expires during custody by the Insured.
Risks Covered for Property
Fire and additional perils – fire, lightning, explosion, earthquake, aircraft, riot, malicious damage, storm, flood, escape of water, impact, damage to underground pipes or cables.
Theft – not restricted to forcible and violent entry or exit
Deductibles for property cover is £1,000 as standard.
Money
Cover is provided for loss of money, normally cover is provided as follows:
- during business hours out of a safe or in transit
- after business hours in a locked safe
- after business hours out of locked safe, at the insured’s home or that of an authorised employee.
Property in transit
Cover is provided for damage to the general contents and stock whilst in transit. Cover excludes damage to property if the vehicle is not securely locked/fully closed/if keys are not removed from vehicle.
Terrorism
Terrorism insurance is insurance purchased by property owners to cover their potential losses and liabilities that might occur due to terrorist activities. In the UK this is covered by Pool Re who have set rates.
Business Interruption
What is Business Interruption?
Policy of indemnity designed to maintain the turnover of a business during an interruption caused by an insured damage.
What type of BI covers are available?
Gross Revenue
- Cover for the whole turnover (Turnover = revenue)
- This is the cover mainly taken by law firms.
- Can cover for a number of years – the ‘indemnity period’
Gross Profit
- Covers the ‘profit’ element of turnover, and mainly for manufacturing risks.
Increased Costs of Working (ICOW)
- Can be stand alone or part of a gross Profit/gross Revenue cover
- The additional expenditure necessarily and reasonably incurred for the sole purpose of avoiding or diminishing a reduction in turnover. ‘Spend a £ to save a £’
What would be covered by ICOW?
- Cost of alternative accommodation
- Removal Costs
- Cost of advertising ‘business as usual’
- Overtime costs
- Additional IT and furniture costs
Additional covers/extensions
- Rent Receivable – covers the loss of rent that the client would receive until the premises are re-tenanted
- Rent Payable – mainly a property cover and covers and rent the insured would pay but property uninhabitable. Usually covered by Landlord under rent receivable
- Accounts receivable (Book Debts) – covers losses when books damaged and unable to trace who owes the client money
- Suppliers/Customers – covers a loss at a suppliers or customers location which impacts the revenue of the insured.
- Public Utilities – Covers a loss in Electricity, Gas, water or communications if damage at one of the generating stations. Can be extended to cover overhead/underground equipment ‘Terminal ends’
- Denial of access – Unable to access building due to fire etc at another nearby location. Can have non-damage (July 7 bombings)
- Restrictions on the use of ‘Infectious diseases’ – covers if a public body restricts or denies access.
- Terrorism – Pool RE
Deductible
Usually a time deductible, rather than a financial amount.
Computer Breakdown
Computer Breakdown
- Cost incurred to repair or replace computer equipment (Electronic Data Processors).
- Also cover any resultant loss of revenue etc under the Business Interruption section.
- Must have an annual maintenance contract
Deductible – Is both a property deductible and a Business Interruption deductible, usually £1,000 and 12 hours.
General Liability
Public Liability
Covers the insured for legal liability in respect of bodily injury, property damage or nuisance, caused by an occurrence in connection with the insured’s business.
- For example, slip/trip at the insured office.
- Dovetails with PI cover.
Limits of liability
- Anywhere from £2m to £25m. Standard is £5m-£10m. For Public liability the limit is per occurrence, for products the limit is per occurrence and in the annual aggregate.
- The cover for both includes defence costs.
Employers’ Liability
Employers’ liability insurance is required by law. The usual limit of indemnity is £10million.
If we are negligent then we can be liable at any time to pay damages, costs and expenses to someone who suffers injury or loss, if they can prove that these things resulted from our negligence. An employer may be liable for injury to an employee.
An employer must display, at each place of business, a certificate of insurance to signify that the employer is insured against legal liability for injury or disease to their employees.
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