All Property at the Business Premises, Belonging to You (the Insured) or for which You (the Insured) are responsible for, including;
- Fixtures, Fittings
- Plant permanently fixed to Your (the Insured) Building
- Computer Systems
- Paintings, works of art
- Property of Your (the Insured) welfare, sports and social clubs.
RECOMMENDATIONS - Business Property (Fire & Perils)
It is essential that sums insured reflect current rebuilding and replacement costs to avoid PENALTY CLAUSES in the event of loss (Co - Insurance Clause). Adequate provision should be made for additional costs such as extra costs of reinstatement to comply with current building regulations, GST, architects fees etc.
We also recommend periodical valuations by recognised quantity and building surveyors. Changes to the Building code and Town planning requirements need to be considered as part of any review of rebuilding costs.
CO-INSURANCE (AVERAGE) CLAUSE
Commercial policies are subject to the Co-Insurance Clause.
This clause has a penalty in the event of under insurance.
If contents are insured for $100,000 when it's true replacement value is $200,000 an insurer will only allow 50% of any claim.
Consequently in the event of a partial loss of $10,000 an insurer would only contribute $5,000.