Commercial Combined

This tends to be for the larger client or when the package policies are not suitable. The main difference is each cover can be selected individually as required by the client. These policies would often be used for manufacturing, wholesale, distribution and leisure risks and can range in premium from £500 to £100,000+.

Materials Damage covers buildings, stock and trade contents with separate amounts for high risk items such as computers, or stock of wines and spirits or non-ferrous metals. The cover is provided at the premises and perils can be added individually although most would normally be provided as standard with optional accidental damage, subsidence and terrorism covers.

The All Risks section gives cover for items away from the premises such as laptops or tools. Cover is provided on a UK, EU or worldwide basis and normally restricts cover for unattended vehicles.

Money cover is provided for cash at the premises and in transit. Overnight limits are normally restricted to £250 or £500 unless in a safe and details of the make and model will be needed to check suitable limits for that quality of safe. Limited cover is also given for business money at directors or authorised employees homes.

Goods in transit will cover stock which you deliver or collect. It can extend to include carriage by courier, haulier or post but for a larger amount a specialist marine policy can be arranged.

Business Interruption is vital as it protects the cash flow within the business. Having inadequate cover will cause the failure of most businesses after a major claim so it is essential that thought to both the indemnity limit and period are given. A major fire, for example, could have an effect on your business for several years; whilst repairs are carried out customers may go elsewhere and it can be hard to get them back.

Public and Products Liability covers you for any damage to third party property or injury to other people (excluding employees) that is caused by your negligence. The legal costs in defending claims are included in the cover and this can be significant. Any property in your custody or control is normally excluded as is damage to the actual item or part you are working upon.

Products Liability covers injury or damage caused by the products that you have supplied. If you sell a product manufactured or supplied by someone else the claim is likely to be made against you and your Insurers will in turn try to recover from the manufacturer or supplier.

However, this is not always possible (they may have ceased trading or be based outside the EU where legal action is more complex) so it is essential you have cover.

Employers’ Liability protects the insured against claims made by employees for injury. This can be from an injury from a sudden accident or illness due to prolonged exposure to a hazard (such as excessive noise or asbestos). It is essential to keep records of who you have been insured with indefinitely as with these claims it may only be decades later that an illness or injury comes to light. If you are unable to trace your insurer you could be liable for settling the claim yourself. It is a legal requirement to insure this risk and also to display an Employers’ Liability certificate at all premises that you operate from.

It is also important to establish who is an employee. The definition can differ from the tax viewpoint and can include voluntary workers as well as paid employees. Insurers will treat labour-only sub-contractors as employees and expect anyone else to have their own insurance.

Other risks can also be added to some insurers’ policies from Legal Expenses to Directors and Officers cover.