Item
Sums Insured (£)
Bob the Broker's Tips
Are you registered for VAT:
Yes No
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 months 24 months 36 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 Months 12 Months 24 Months 36 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 Months 18 Months 24 Months 36 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
Item Name
Item Value
Item Description
