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Corporate

ALL RISKS& BUSINESS INTERRUPTION

PROPERTY DAMAGE ALL RISKS:

Depending on the type and size of the business, whether it is a production facility or representative and trade office, locations distribution, whether it is a subsidiary of a multinational company or a local company, the requirements for a Property Damage insurance vary considerably.

The types of Property Damage insurance are as follows:

Property Damage All risks /Named Perils insurance for Buildings, Machinery & Equipment, Furniture & Fixtures, Office contents, Stock in Warehouse insurance, Electronic Equipment All risks insurance for Electronic Data Processing (EDP) equipment, Machinery Breakdown insurance for Machinery & Equipment, Business Interruption insurance for Manufacturing companies.

Depending on the type of industry, the Property coverage could be designed to include sub-limits for the basic perils in order to achieve a premium reduction and there is also the possibility to include sub-limits with specific insurance extensions such as CAR extension, Public Utilities extension, etc.

Balkan Insurance Brokers design a Comprehensive Insurance Program for Companies and provide full insurance service in terms of insurance placement, negotiation, claims handling, daily administration and consultancy.


BUSINESS INTERRUPTION INSURANCE


I. What is Business Interruption Coverage?

Business interruption coverage is a tightly constructed part of broader commercial insurance policies. This coverage is most commonly found in commercial property insurance policies and business owner’s policies (a package policy for small businesses, often referred to as a “BOP”).

There are four critical elements to business interruption insurance:
  •  It is only triggered in three limited circumstances:
1. There is physical damage to the premises of such magnitude that the business
must suspend its operations.
2. There is physical damage to other property caused by a loss that would be covered under the company’s insurance policy, and that damage totally or
partially prevents customers or employees from gaining access to the business.
3. The government shuts down an area due to property damage caused by a peril covered by the company’s insurance policy that prevents customers or
employees from gaining access to the premises.
  •  Even after a covered event, most policies have a waiting period of several days before business interruption coverage comes into play. Once it is in play, the coverage is not retroactive to the day of the event.
  • Coverage is limited. Specifically, after the waiting period expires, coverage is provided for lost net income, temporary relocation expenses (designed to reduce overall costs), and ongoing expenses such as payroll that enables businesses to continue paying employees rather than laying them off.
  • Coverage is not open-ended. Coverage is available only for as long as it is necessary toget the business running again, and usually not longer than 12 months. In addition, the business is required to prove all business interruption losses to its insurer.

II. Business Interruption Coverage is Limited

Business interruption coverage is a limited form of coverage, and is not a blank check for every business disruption. 
In addition to the above limitations, standard business interruption coverage is restricted in the following ways:
  • Suspension of Operations – Suspensions, slowdowns and cessations by a covered event are covered.
  • Unfavorable Business Conditions Not Covered - However, lost net income due to unfavorable business conditions following a loss is not covered.