Priority Insurance

The Business Interruption policy can insure the project company for loss of Net Profit and Standing Charges until such time as normal production or commercial operation is resumed. The Indemnity Period typically ranges from 3 to 18 months depending on the nature of the operations. Insured perils follow the Fire or Property All Risks policy, and there has to have been an accepted property damage claim for the associated business interruption claim to be valid

This type of policy covers the civil works from commencement of construction to final handover (including testing/commissioning and extended maintenance – normally 12 months). The policy also normally includes a section covering claims arising from third parties (Third Party Liability) who are injured, or whose property is damaged, during the construction period.

The policy pays for Anticipated Net Profit plus Standing Charges during the period of delay, from the scheduled date of commencement of commercial operation up to the actual date of commencement of commercial operation, subject to a time excess and the Indemnity Period. The delay must have occurred due to a loss during construction, and payable under the Construction/Erection All Risks policy.

This policy covers mechanical and electrical breakdown of plant and machinery, and the ensuing loss of production (cover which is often excluded from Fire and Property All Risks policies). Policies can also cover loss to surrounding property damaged by breakdown, such as in the case of explosion of boiler machinery. The cover is important for critical items of plant where limited back-up or standby facilities exist or where sophisticated and expensive equipment is in place. Companies should consider maintaining adequate back-ups, and holding spares of critical components.

 (also known as General Liability or Public Liability)

This policy protects the policyholder in respect of legal liability to third parties (not employees) for both bodily injury and for any loss of or damage to their property.

All businesses have a legal liability to their customers, suppliers and the general public.

Product Liability insurance indemnifies the insured for compensation awarded in court or compensation agreed with insurer’s consent out-of-court, as well as costs associated with defending claims, both of which may be substantial.

Product Liability is imposed under several different legal theories, including negligence, breach of contract and strict liability in tort.

1. Loss of money and/or other property belonging to the insured or for which they are responsible stolen by an insured employee during the currency of this section.
2. Direct financial loss sustained by the insured as a result of fraud or dishonesty of an insured employee all of which occurs during the currency of this section which results in dishonest personal financial gain for the employee concerned.

Loss of or damage to the whole or part of the property described in the schedule, owned by the insured or for which they are responsible in the course of transit by the means of conveyance or other means incidental thereto and caused by any accident or misfortune not otherwise excluded.

Third Party Only (TPO) insurance is the minimum legal requirement for vehicles to be driven on public roads. TPO insurance will only cover loss, damage or injury inflicted on a third party. If you have Third Party Only insurance, your own losses, damage or injury (apart from passengers) will not be covered. A Motor Trader therefore really needs extra protection for his vehicles above this basic Third Party requirement.

Third Party Fire and Theft (TPFT) is a step-up from Third Party Only. TPFT pays out in the event of loss or damage to vehicles under the motor trader’s custody or control in the event of theft or fire, as well as to third party damage or injury claims. This is particularly relevant if vehicles are stolen and “torched”. The cost of TPFT cover is nowadays not significantly different to Comprehensive cover.

Comprehensive (Comp) A Comprehensive policy includes the same cover as TPO & TPFT plus accidental damage to the vehicles that the trader owns or has care of. So if a customer’s vehicle is damaged in an accident while being tested, Comprehensive cover will cover the cost of the repairs.

Damage or loss which the insured shall become legally liable to pay consequent upon death of or bodily injury to or illness of any person employed under a contract of service or apprenticeship with the insured, which occurred in the course of and in connection with such person’s employment by the insured within the territorial limits and on or after the retroactive date shown in the schedule, and which results in a claim first being made against the insured in writing during the period of insurance.

The policy comprises some of the following sections:

On Premises : Covers money and/or securities belonging to, or in the custody of bank, whilst on their own premises or on the premises of their bankers, against loss or destruction by Fire, Riot & Strike, Malicious damage, terrorist act, burglary ,theft ,robbery or hold-up.

In Transit: Covers money and/or securities if they are lost ,stolen, mislaid, misappropriated or made away with, whilst in transit in the hands of its employees whether by negligence or fraud of the employees.

Forgery or Alteration: Covers losses suffered as a result of payment of bogus, fictitious, forged cheques or drafts as also forged endorsements on genuine cheques or drafts.

Dishonesty: Covers loss of money and/or securities suffered due to dishonest or criminal act of its employees.

Registered Postal Service: Covers loss of registered postal sending by robbery, theft or any other cause not specifically excluded, provided that each post parcel shall be insured with the post office.