Frequently asked questions

1. I have heard of the terms Specified Perils and All Risks. Surely there must be a simpler way of explaining what is actually covered ?
This is a common question asked by the general public. Insurance companies have in place clear definitions of what is and isn't covered under commercial policies. The term Fire and Specified Perils (including Theft) covers your property against loss or damage caused by:

• Fire, Lightning and Explosion excluding the explosion of boilers (except those used for domestic purposes only) economisers or other vessels/machines or apparatus that are under steam pressure.
• Earthquake, Subterranean Fire, Riots, Civil Commotion, Strikes and Labour Disturbances, Malicious Persons or Vandals.
• Storm, Tempest, Flood, excluding damage to fences and gates and moveable property in the open. Bursting or overflowing of Water Tanks, Apparatus or Pipes (not being automatic sprinkler installations).
• Impact caused by aircraft (or articles dropped therefrom), vehicles and animals except falling trees, and/or collapse of TV/radio aerials and satellite dishes but excluding damage to fences and gates.
• Theft or violent and forcible entry to or from the Premises.
• The term All Risks covers your property against loss or damage.
• All Risks includes all of the above mentioned benefits plus Accidental Damage cover but excluding subsidence and sprinkler leakage. Sprinkler leakage is available as an additional peril.
• The above mentioned covers will usually be subject to an excess other than in respect of fire, lightning and explosion. A number of exceptions may also apply.

2. Why should I buy commercial insurance through a broker? Surely this is a more expensive route.
The broker is a specialist in commercial insurance matters and offers friendly, impartial advice including additional professional services. The broker is in a position to search the insurance market and find the most suitable policy that covers your business needs at a competitive price.

Increasingly brokers are now offering Risk Management advice and tailor-made solutions to the SME market. Moreover, the broker will liase with you in handling claims and appointing loss adjusters.

Several factors have contributed to insurers increasing their rates. These include the frequent and severe floods we have seen throughout the UK and the rising reinsurance rates imposed upon insurance companies following on from the September 11th tragedy. Furthermore, Employers Liability premiums have also risen in recent years as a direct result of accidents in the workplace.

Price and service are the principal reasons behind choosing an insurance provider. Insurance companies are now concentrating on offering added value services and are making themselves available 24 hours a day. Furthermore, further discounts are offered if the customer adopts good risk management in his business and takes extra precautionary measures.

4. What do you mean by emergency assistance for commercial customers?
Insurance companies offer emergency assistance with their commercial policies. This is a rapid response from reputable local contractors that deal with any sort of emergency on your premises, including burst pipes, drainage problems, gas or electricity failures or serious roof damage.

Furthermore, there may also be glass replacement and locksmith services that facilitate rapid call outs for any glazing or door and window security problems.