Every business owner has a need to overcome the risks in the industrial unit or manufacturing facility that he owns. Such as fires, equipment failures, boiler explosions, etc. One of these risks can cause loss of profit and interference from your business operations.
Property insurance provides protection against most risks to property, such as fire, theft and some weather damage. This includes special forms of insurance such as fire insurance, flood insurance, earthquake insurance, home insurance.
Property is insured in two main ways:
A. General Risks
General risks guarantee all causes of losses that are not specifically excluded in the policy. Common exceptions to general risk policies include damage from earthquakes, floods, nuclear incidents, acts of terrorism and war.
Example: Property All Risks
B. Special Risks
Special risks require a specific cause of loss to be mentioned in the insurance policy that will be given. Common special risks include events that cause damage such as fire, lightning explosion, and theft.
Example: Fire Insurance
Benefit for the insured
Property All Risk is an insurance that guarantees all risks of loss on property (except for some risks listed in the exception).
Property All Risk is the most popular type of insurance compared to other types of insurance, because it guarantees all risks of loss unless only a few risks are listed in the exception.
The following extensions are available under the Property All Risks Insurance Policy:
- Loss of profits business interruption
- Loss of rent
- Third party legal liability including the landlord's liability towards tenants and the tenants liability towards the landlords
- Strikes, riots & civil commotions
- Malicious damage
- Accidental damage to plate glass fixed to the building
- Expenses incurred on removing debris following the loss or damage of the insured property
- Fire brigade charges and extinguishing expenses
- Architects, surveyors, legal and consulting engineeing fees
Business Interruption Insurance (also called Business Income and Extra Expense Insurance) is designed to cover lost income when you have to close your business temporarily because of events beyond your control. It’s an extra layer of protection that goes beyond more common insurance policies like Property Insurance.
Business Interruption policy can provide coverage for three things:
- The profits you would have earned if the incident did not occur.
- Normal operating expenses, even though the business is temporarily closed. This includes your employees' wages so you can keep them on staff during the interruption.
- The expense of moving your business to a temporary location. This might include both moving and rent costs.
Machines do breakdown unexpectedly as a consequence for this reasons, it’s essential to cover these machines against accidental damages and losses.
Many businesses have invested large sums of money into acquiring machineries that fit their specific business requirements. Machinery Breakdown Insurance provides guarantees or protection for losses or damage to machines whether at work or at rest and during cleaning, inspection, over-hauling, and removal to another position within the premises. The policy covers all accidental damages or losses due any causes except those specifically excluded in the policy.
Scope of Cover:
- Defects in casting and material
- Faulty design
- Faults at workshop or in erection
- Bad workmanship, lack of skill, carelessness
- Physical explosion
- Tearing apart on account of centrifugal force
- Electrical causes such as short circuit
Terrorism and Sabotage Insurance has been specifically designed to cover the sabotage, terrorism, mutiny, rebellion, insurrection and coup d’état (excluding war and civil war) risks faced by multinational companies operating in countries where these risks are normally excluded from standard insurance programmes. Coverage for strike, riot and civil commotion can be included by endorsement.
Property Terrorism Sabotage includes cover for;
- Riots, Strikes, Civil Commotion and Malicious Damage, Fire and Looting.
Political Violence includes Insurrection, Rebellion, Revolution, Mutiny and Coup D’Etat.
Electronic equipment insurance covers all sudden and unforeseen physical losses, which are not subject of exclusions, listed in insurance conditions. Subject of insurance are individual pieces of equipment or computer and data processing equipment of the Insured.
Electronic equipment insurance mainly covers material damage caused by following reasons:
- damage caused by operation
- damage caused by electric energy (short circuit, excess voltage or induction)
- damage caused by human element (faulty operation, lack of skill, negligence)
- damage caused by manufacturer (faulty design, defects in material, faults at workshop, faults in erection)
Contractors Plant and Machinery Insurance provides coverage for plants and machineries used by contractors at construction sites. This insurance provides protection against losses or damages from any causes not specifically excluded in a manner necessitating repair or replacement. The sum insured should equal to the cost of replacement of the same kind and capacity via the cost of replacement including freight, dues and customs duties plus cost of erection.
Moveable insurance covers the interest from all type of risks or accident that could make damage/loss to your interest.
This insurance generally provided to cover movable items/property such as office equipment (i.e. computers, copy machines, fax machines, telephone machines, etc.).
- Loss or damage that is directly or indirectly caused by war, civil war, revolution, riots, riots, strikes and the like.
- Loss or damage directly or indirectly caused by the risk of earthquakes, volcanic eruptions or tsunamis.
- Loss or damage directly or indirectly caused by wear, rust, mold, decay, discoloration, and damage and damage due to mice and insects.
- Explosion and nuclear radiation.
- Intentional or carelessness of the Insured.
- Loss or damage that occurs after a process or similar work takes place.
- Placement errors, storage errors or mysterious losses.
- Loss or damage due to fraud or embezzlement.
- Damage to electrical or mechanical equipment.
- Other exceptions as stated in the policy.
Your premium depending on:
- The type of cover selected
- Any additional cover selected
- The sum insured
- Insurance requirements