Exclusions differ from one insurer to another, and checking them is part of our work before we recommend a policy to you.
A fire in the distribution board destroys the packaging line and part of the warehouse. The property policy pays for the equipment and the stock, while the business interruption extension covers fixed costs and lost margin until the line is replaced. Without that extension the company gets a new machine but carries three months of downtime on its own.
After heavy rainfall water enters a ground-floor warehouse and ruins palletised goods. Everything turns on whether flood and high water were actually agreed in the policy, because a basic fire package does not include them automatically. We check that item, and the location of the building, on every quote.
A company insured its equipment at purchase value several years ago and never revised it, even though it has bought new machines since. When a loss happens the insurer applies the average rule and pays only part of it. That is why we go through the asset register with you and bring the sums up to date before each renewal.
The examples are illustrative and show how the cover works in practice.
The premium depends on your line of business, the construction class of the building, the sum insured, the risks you choose and the deductible, as well as on whether you have fire protection and an alarm. The same company can receive very different quotes from different insurers. We collect the quotes and compare them on an identical scope of cover, so the difference in price is a real one.
On a reinstatement basis the payout is calculated as the cost of buying a new asset of the same kind, with no deduction for depreciation. On an actual cash value basis, estimated wear is deducted from that figure. For older equipment insurers often offer actual cash value only, so this is something to know before a loss rather than after one.
The test is not the size of the company but how many days you can survive without income while the premises or the machine are brought back into service. If you depend on one critical machine or one location, business interruption often matters more than the property itself. The indemnity period is agreed in advance and should match the realistic time needed to source equipment and repair the damage.
It does, but only if the policy clearly describes it as third party property in your care, or if you have insured your own fit-out of the leased space as a tenant. The policy held by the landlord as a rule does not cover your equipment and stock. That is why we read the lease first and arrange the policy afterwards.
The policyholder reports the claim within the deadline set by the policy conditions, together with documents on how the loss happened and how large it is. Payment deadlines are set by law and by the conditions of the insurer, and they run from the moment complete documentation is submitted. As your broker we prepare the notification with you, deal with the loss adjuster and follow the file through to payment, at no extra cost to you.
Send us a short enquiry. We collect offers from every insurer that covers this risk and explain the differences before you sign anything.
