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Business All Risk Section
What does business all-risk insurance cover?
Defined Events Loss of or damage to the whole or part of the property described in the schedule while anywhere in the world by any accident or misfortune not otherwise excluded. Provided that: the insured shall be responsible for the first amount payable stated in the schedule in respect of each and every event except a claim resulting from fire, lightning or explosion.
What does all risk insurance not cover?
Specific Exceptions The company shall not be liable for
1. Loss of or damage to property resulting from or caused by:
(a) theft from any unattended vehicle in the custody or control of the insured or any principal, partner, director or employee of the insured unless the property is contained in a completely closed and securely locked vehicle or the vehicle is housed in a locked building.
Entry to or exit from such locked vehicle or building is accompanied by forcible and violent entry or exit. If the insured can demonstrate through video surveillance footage (or any other conclusive proof) that an attempt was made to lock the vehicle using the vehicle remote but that the locking mechanism was blocked by thieves using an electronic device, such evidence shall be deemed to satisfy the forcible and violent entry or exit requirement for any loss out of the cab or boot of the vehicle;
(b) it's undergoing a process of cleaning, repair, dyeing, bleaching, alteration or restoration;
(c) inherent vice or defect, vermin, insects, damp, mildew or rust;
(d) the dishonesty of any principal, partner, director or employee of the insured, whether acting alone or in collusion with others;
(e) detention, confiscation or requisition by customs or other officials or authorities;
2. wear and tear or gradual deterioration (including the gradual action of light or climatic or atmospheric conditions) unless following an accident or misfortune not otherwise excluded;
3. mechanical, electronic or electrical breakdown, failure, breakage or derangement unless caused by an accident or misfortune not otherwise excluded;
4. loss of or damage to cash, bank and currency notes, coins, bonds, coupons, stamps, negotiable instruments, title deeds, manuscripts or securities of any kind;
5. loss of or damage to goods consigned under a bill of lading.
What is unspecified all risk?
Unspecified all risks are not often used under business all risks comprehensive insurance item for clothing and personal effects. Now, risk cover is available for any item with one of the insurance companies with whom we do business. We have, on occasion, created unspecified where there is a demand to ensure a toolbox on several vehicles—for example, seven bakkies with tools on them for R10 000 each.
Why would a business take cover for all risks?
Businesses are subject to significant risks on certain items belonging to the company that need to be specified.
Cell phones
Laptops (Laptop Insurance)
I-Pads
Tools
Generators
Drones
Testing equipment
Etc
The list may differ from one business to the other.
Example of a claim
A cell phone belonging to the business gets stolen at the house of one of the employees. The insurer will examine the circumstances and determine whether the incident is not explicitly excluded from the policy. The insurer will continue after receiving a claim form, a police reference, and a quote to replace the item.
The insurance company reserves the right to pay the claim in cash and replace or repair the item if damaged.
Cash payment is always the last option, and it usually happens if the value of the item on the policy is less than the cost to replace it.
Theft of cell phones is something we deal with often.
Why insure cell phones on the business policy and not on the personal insurance of the owner of the business?
We often see business owners trying to insure items on their insurance rather than business insurance, probably trying to save premiums. They may think the personal insurance policy offers a broader cover.
The benefits are the same, and you cannot insure something if it does not belong to you.
Business insurance is an expense for the business; the premium can be deducted as a cost, and the VAT can be claimed on insurance products by the company.
Summary of business all risks insurance
In the business, all risk section is specific items get specified, and a premium is paid on each item. You decide if something goes on the insurance, if somebody will carry them around away from the business premises and if or when the risk is high. The exact details of the items covered by the insurance need to appear on the schedule, for example, the accurate description and IMEI number.
AS Brokers is an authorised financial services provider, and we do business all risks policy with a licensed non-life insurer
Contact us by following the link, scrolling down to the contact page, and putting all business risks in the comment box.
Albert Schuurman
I have been an advisor in insurance and financial planning for the last 25 years. I am also the creator of the financial freedom course. I identified the need for the course because people plan for retirement instead of financial freedom.
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