Item | Sums Insured (£) | Bob the Broker's Tips |
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Are you registered for VAT: | YesNo | If yes, you need not include VAT in the Sums Insured, but if you do 20% is a good cushion against uncertainty. |
The Buildings at the risk address |
| Almost always insured by the owner for the cost of rebuilding including demolition, professional fees, and public authority upgrades |
Landlords Loss Rent |
| Covered in the owner’s policy and on a standard lease usually for 36 months, most often paid by the tenant as part of the lease agreement. |
Period of Loss Rent Period | | 12 months24 months36 months |
Tennants Improvements |
| The cost of making additions or alterations to the Landlord’s Building that would remain to be inherited by the landlord at the end of the lease |
External fixed Signage |
| Signage is expensive and vulnerable to weather and malicious damage, It should be insured for the full cost of replacement |
Contents Items (Excluding Stock) | Sums Insured (£) | |
|---|
Machinery, Plant & Equipment |
| It is important to remember that we need to replace & the equipment as new. It’s the replacement cost on current specification, not the ‘book value’ that’s important |
Fixtures & Fittings |
| This is a mixture of contents and fixtures which you would be able to remove if you were leaving the premises. Items like shop fitting, fixed seating can fall between here and Tenant’s Improvements. Thought required! |
Computers & Electronic Hardware |
| The cost of replacing the equipment, as new. The big & issue here is loss of data and other cyber consequences, but that’s another discussion we need to have Want to have that discussion ? Discuss Cyber & Data Protection |
Portable Devices each individually under £2,000 in value |
| The cost of replacing as new. This goes beyond phones/laptops – think about specialist equipment you take out of the business. |
Stock | Sums Insured (£) | |
|---|
Stock of Alcohol |
| The wholesale purchase price |
Stock of Tobacco |
| The wholesale purchase price |
High Value attractive Stock |
| Stuff that people would break in for. |
Stock in the Open |
| Stuff that people would climb into the yard for |
Chilled & Frozen Foods |
| You’ll need a maintenance contract to get a claim paid if it’s a breakdown of the cabinet or refrigeration. |
All other Stock |
| Everything that’s not any of the above. |
Business Interruption | Sums Insured (£) | |
|---|
For Businesses that Are premises dependent | | |
Annual gross profit: (there is no universal definition for gross profit but if you want the wages paid go with Bob's tips) |
| This is the gross margin on turnover less cost of sales (usually stock). Not to be confused with Net Profit. The sum insured should look forward to project the trend, not look backwards. Most disastrous business insurance claims are associated by being under insured or for too short a period of interruption. (Except in exceptional circumstances the period should not be less than 24 months probably 36 months) |
| Number of months covered | 6 Months12 Months24 Months36 Months |
For Businesses that are Not premises dependent | | |
Annual increased cost of working: |
| for businesses where turnover is earned ‘away’ from the premises and short term relocation expenses are more appropriate as turnover is less likely to be affected.. |
| Number of months covered | 12 Months18 Months24 Months36 Months |
| Money | Sums Insured (£) | On the premises during business hours: |
| If the premises were, say held up |
In the premises outside business hours: |
| Contained in locked safes or strongrooms |
In the premises outside business hours: but Accessible (in the till) |
| Leave the tills open, thanks! |
At a private residence: |
| Some people take money home. Not Recommended. Cover is usually limited to £250 |
In gaming, amusement or vending machines: |
| First, Check who is responsible for the machine & the money |
Cash In Transit | | |
From the premises to the bank: |
| That’s literal. Don’t go anywhere else. Don’t carry more than £2500.00 in cash per person. Take more people or go more often. |
Loss of License | | |
Reduction in value of the premises |
| as a result of losing an alcohol license, Breweries and Landlords often insist on this, We've never seen a successful claim in 40 years. |
Reduction in Gross Profit |
| as a result of losing an alcohol license this makes more sense, though it's hard to claim as the kind of stupidity that would lead to a claim is routinely excluded from cover. Although we've never seen a successful claim, it is possible, however, so should be considered a risk. |
All Risks Specified Items | | This would comprise items taken outwith the premises that are individually worth more than £2,000 |
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