These are the most common exclusions in insurance, and they differ by class of insurance. All exclusions, like all covers, are set out in the policy conditions.
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 profit, depending on the indemnity period agreed in the cover.
After heavy rainfall, or where the building sits close to a river that bursts its banks, water enters a ground-floor warehouse and ruins palletised goods and flooring. Everything turns on whether the additional risk of flood, torrent and high water was agreed in the policy, because a basic fire package does not include it automatically.
A company insured its building at purchase value several years ago and never revised it, even though there have been further investments since and the construction value is now considerably higher. When a loss happens the insurer applies the average rule and pays proportionally less against the sum insured that was declared. That is why we check before each renewal whether values have changed, so that everything is properly covered.
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 the protection measures you have in place. 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.
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 is an important item. 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 ownership is clearly stated in the policy, 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.
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 help you when a loss occurs, deal with the insurer 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.
