When it comes to business / commercial insurance, there are over 23 possible sections that can make up a single policy.
In addition to that, there are a multiple of unique, niche policy types that are generally taken as standalone policies such as Marine, Professional Indemnity, Guarantees and the like.
This is where anyone going direct with insurers are opened up to a much greater risk on uninsured losses. Where a business owners goes direct, the insurer will quote on the covers asked for… but one wouldn’t ask for covers they are not aware exist.
For example: A shop owner may request cover for their store and tell the insurer that they have one computer, a point of sale system, telephone and then insure some office contents and stock. However, the shop owner would also need to consider taking up cover under the:
- Glass Section – to cover shop windows, fridge doors and glass display cabinets.
- Business Interruption Section – should a claim make the business incapable of operating for a period of time.
- Machinery Breakdown – such as fridge motor breakdown (which could extend to a need for deterioration of stock cover)
- Accidental Damages
- Theft section – because Stock is generally covered under the Fire section but this excludes theft.
The list goes on.
Some sections can be taken out but cannot be utilized without the support of another section. For instance, if you ask for cover for ‘deterioration of stock’ then you would also have to take up ‘Machinery Breakdown’ cover. This is because thee would need to be a machinery breakdown claim lodged in order to make use of the deterioration section.
This illustrates that there’s a lot more to Insurance than Direct Insurers lead you to believe in their TV ads. There’s a lot to consider, a lot to discuss, multiple ways to set it up and that is before you get into the nitty gritty of each insurers T&Cs, excesses, wordings and limits & extensions.
Business owners need the sound and qualified advice of a professional Broker to guide them through all of this. This guidance is only one benefit to having a Broker. In addition to great advice, more often than not, Brokers can source the best value and premiums.
Don’t try navigate on your own, if you don’t have a Broker, contact us today.
EMAIL: covered@finesseinsurance.co.za I CALL: 079 686 0843
