Property Insurance protects your client’s business property (e.g., their office building and its contents). When insured property is damaged in a covered event, the policy pays to repair or replace it (up to the stated limits).
A commercial combined insurance policy will routinely include some or all of the following 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.
Frequently Asked Questions
What is a covered event?
Property Insurance policies may cover different perils, but generally, covered events include loss or damage caused by fire, theft, vandalism, and windstorms.
How much does Property Insurance cost?
Your client’s Property Insurance premium depends on many factors, such as the quality of their building’s construction, the type of business they run, the tenants they share the space with, and their risk management measures.
Buildings insurance covers the cost of repairing or rebuilding your business premises if damaged or destroyed.
Contents insurance covers the cost of replacing your business’s stock or equipment if it is damaged or stolen.
Valuing your stock and equipment
If you are taking out contents insurance you should insure stock against its cost price, not its sale price. If there are times when you have more stock on your premises than usual, for example in the run-up to Christmas, you should make sure your insurance covers this.
Business interruption insurance covers you if you cannot do business as normal as a result of an event that causes damage to your premises or equipment. It is usually offered as an extra when you buy buildings or contents insurance.
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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.
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
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.
Common Behavioural Clauses
Warranties & Conditions Precedent to Liability Please see your policy schedule, check your policy wordings.
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Working With Us
Which Services will we Provide you with
The Business Insurance Bureau conducts both client and market research to identify solutions to the needs of an almost exclusively business clientele. We will make a recommendation once we have assessed your demands and needs.
All premiums due to insurers must normally be paid by you on or before the date that cover commences. Where alternative methods of payment are available these will be discussed with you so that arrangements can be put in place by the due date.
Confidentiality & Security
We are registered with the Data Protection Registrar. We will ensure that any information obtained from you is treated by us and anyone else involved in arranging, considering to arrange or managing your insurance, as Strictly Private and Confidential. We will not provide your information to anyone else unless we:
have your permission to do so, or -are required to by the FCA, or -are required to do so by law, or -are required to do so in the normal course of arranging or negotiating and maintaining, or renewing financial services products which we may from time to time approve.We take appropriate steps to ensure the security of any money, documents, other property or information handled or held on your behalf.
All information in any form, with the exception of policy documents and certificates issued on behalf of insurers and supplied by us, to you, should be treated as Strictly Private and Confidential and not be released directly or indirectly to any other party, without our explicit consent.
Note: in transacting your insurances with The Business Insurance Bureau, you are deemed to have accepted our Terms of Business. Your accepting of these Terms of Business does not affect your statutory rights.
You must notify us as soon as possible of a claim and circumstances which may give rise to a claim. In the event of a claim you should contact this office and we will promptly advise you and if appropriate, issue you with a claim form and pass all details to your insurer. You should not admit liability or agree to any course of action, other than emergency measures carried out to minimise the loss, until you have an agreement from your insurer. We will remit claims payments to you as soon as possible after they have been received on your behalf. In the event that an insurer becomes insolvent or delays making settlement we do not accept liability for any unpaid amounts.
You would have the right to cancel a policy within 14 days of its inception or upon receipt of the policy documentation whichever is the later. You would as a Consumer and without providing a reason, cancel the policy by confirming this is in writing to the address of our office through which your policy was placed. Any policy documentation and in particular any legal document, i.e. Certificate of Motor Insurance, Employers Liability Certificate, MUST be returned with your instruction to cancel. By exercising your right to cancel the policy, you are withdrawing from the contract of insurance.
Duration & Termination
Our services may be terminated without cause or penalty by giving one months’ notice in writing. In the event that our services are terminated by you other than at the expiry of the policy we will be entitled to retain any fees and all of the brokerage payable. The responsibility for handling claims reported after the date of termination shall in the absence of an express agreement be the responsibility of the party taking over the role.