When the unexpected strikes, it can be devastating for your business. Guard against damage caused by fire, lightning and explosion with this policy – which provides cover for plant, machinery, fixtures and fittings and all other contents and tenant improvements.
Cover can also be extended to include damage by storm, wind, water, hail or snow, earthquake, impact by animals, trees, aerials, satellite dishes, vehicles, aircraft and other aerial devices or articles dropped there from, leakage or discharge from fire extinguishing appliances, subsidence and landslip and malicious damage.
- Always base the sum insured on the new replacement value, taking into account the escalation and post-loss inflation of rebuilding costs.
- Remember to include tenant improvements (e.g. flooring, partitioning, etc.) plus demolition and debris removal costs in the sum insured.
- Stock – insure at the cost price to you (inclusive of VAT), NOT at the retail/resale price. Be mindful of stacking heights and ensure that stock is stored on pallets.
- Buildings – always insure for the full replacement value, and NOT market value which bears no relationship to rebuilding costs. Include boundary and other walls, parking areas, driveways and all other structures.
- Replacement value must include cost of demolition, debris removal, and erection of hoardings during rebuilding. Also include professional fees (e.g. architects, quantity surveyors) for reinstatement, limited to 15% of rebuilding costs.
- Remember to also include air conditioning units and other landlord fixtures and fittings.
- Hot Work Permit – Any operation involving cutting, welding or any other hot works must adhere to the programme works which requires a permit to be issued by an authorised senior personnel each time such work is done. The permit should be in the possession of the welder during the work and immediately upon completion, it must be returned to the person who authorised the permit and signed off
- Theft from the building, or of goods in the open (e.g. air conditioning units, manhole covers, piping, neon signs and other signage, gutters, etc.), is not covered unless specified.
Glass section: (this falls under Fire & Allied Peril Insurance, but the glass insurance link can direct to here)
Replacing commercial glass in a building can be very costly. Structural glass in homes, apartments, commercial buildings, retail establishments, showrooms, complexes, restaurants, hotels, theatres and stadiums often all have very large glass exposures that can cost hundreds of thousands or even millions of Rands to replace.
Compendium’s special glass insurance covers loss or damage to internal and external glass (including mirrors), signwriting and treatments thereon.
Cover includes other costs such as boarding-up, frames, fixtures and fittings, and the hire of watchmen – up to an about stated in the policy.
Unless specifically agreed, all glass is presumed to be plain plate/float glass, not exceeding 6mm in thickness, whether coated with a film or not, or 6.5 mm laminated safety glass. Please ensure that your sum insured is adequate as this section is subject to “average.”
Cover should be equal to the full replacement cost of all signage and glass, including deli counters, counter tops and fridges. Replacements must be based on the requirements of the National Building Regulations.