PHYSICAL DAMAGE COVERS
A commercial combined insurance policy will routinely include some or all of the following perils:
Fire & Perils
Fire, Lightning, Explosion, Aircraft, Riot and Civil Commotion, Malicious Damage, Earthquake, Storm, Tempest and Flood, Burst Pipes, Sprinkler Leakage, Impact, Subsidence, Subterranean Fire, Spontaneous Combustion, Theft (Forcible Entry). In addition to these covers, you can choose to extend your policy to include Accidental Damage and this would be included in one of two ways.
Accidental Damage Extension
Sometimes erroneously known as ‘all-risks’ cover, accidental damage can be added as a standard peril.
Full All Risks Cover
This is the widest form of cover available. The approach is reversed and every event is covered that is not excluded. The list of exclusions is of course lengthy and incorporating the standard exclusions of:
- wear and tear, depreciation, gradual deterioration
- moth, vermin or any process of cleaning, dyeing
- electrical or mechanical derangement
- losses from unattended vehicles
- Anything covered more specifically under another cover or policy.
Architects, Surveyors and Consulting Engineers Fees, Public Authorities, Removal of Debris, Capital Additions, Contract Price, All Other Contents, Annexes, Electrical Services, Temporary Removal.
Common Behavioural Clauses:
Warranties & Conditions Precedent to Liability Please see your policy schedule, check your policy wording and in this report, the Do’s & Don’ts pages.
Please check your policy wording for a full list of exclusions.
GOODS (STOCK) IN TRANSIT
Cover is on an ‘all-risks’ basis and covers goods whilst in transit anywhere in Great Britain including loading, carriage, unloading or temporary garaging of vehicles and trailers. There are two types of policy issued:
- own vehicles with a set sum insured per vehicle
- all goods dispatched by the insured in their own or
- Hauliers vehicles or by rail or post. The sum insured is per consignment.
Exclusions would include:
- Goods of a dangerous nature
- Cash, currency, bonds, securities, precious metals etc.
- Theft or pilferage by insured’s own employees
- Samples accompanying commercial travellers
- Theft from an unattended vehicle overnight unless garaged or in an approved security compound. Overnight is usually between the hours of 2100 and 0600.
- Vehicles not alarmed or secured properly are not covered whilst unattended
Money can be cash, bank and currency notes, cheques, Postal orders, stamps and luncheon vouchers amongst others.
A standard money policy would include cover for:
- money / cash in transit
- on the premises during business hours
- in a locked safe or strong room
- at an employee’s home (very limited amounts)
- in the custody of a professional security company
The limits will depend upon the level of security but in terms of carrying cash, most insurers will want a professional security company above £7,500 in transit and up to three people accompanying below that figure.
An extension is normally available in respect of personal accident / assault, which provides fixed benefits to employees assaulted whilst carrying out their business. With regards to any safe(s) on the premises it is usually warranted that all keys be removed from the premises outside business hours.
There are exclusions and these have been listed below:
- dishonesty of any partner, director or employee
- shortage due to error or omission
- losses recoverable under a fidelity guarantee policy
- losses from unattended vehicles
- contents of coin operated machines although these can be added upon request
‘Frozen Food’ cover, also known as ‘deterioration of stock’ provides cover for loss or damage to foodstuffs contained within the refrigerating units at the Premises. The Specified events are usually deterioration, contamination or putrefaction caused by or arising from a rise or fall in temperatures.
In turn this must be caused by;
- Mechanical or electrical defects in the unit in normal working conditions
- non operation of thermostatic controlling devices as part of the unit
- Accidental failure of the public supply of electricity not occasioned by the deliberate act of the relevant authorities
- Accidental leakage of refrigerant fumes from the unit
The limit of liability is sometimes specific, machine-by-machine, but more commonly gives a single sum insured over the total stock.
Normal exclusions are;
- The first 30 minutes
- wear and tear
- incorrect settings.
It is common for such covers to demand that the equipment, above a certain age – usually 3 years, is maintained by a professional refrigeration company on an annual basis.
If you would like more information or like to discuss Financial Loss Insurance please call us on 0141-332-7076 or you can use our Contact Us page to send us a message.
Alternatively you can find out more About Us here and the Claims Experience we have or you can go back to our Home Page to look what other services we can offer you.