• +27 31 534 5300
  • info@rrib.co.za
  • 21 Riverhorse Close, Riverhorse Valley

Commercial Insurance

KEEP YOUR CASH FLOW MOVING FORWARD

At Reid Raetzer Robsons, we understand how difficult it is to build a business, maintain cashflow and increase profits, especially with all the external risks we face in South Africa. Our Business Brokers will partner with you to protect your potential for growth by assessing the risks that could disrupt your cashflow, or worse, close your doors.

Business Insurance Policies, also known as Commercial Policies, are insurance policies that specifically cater for the risks that your business may fall victim to. We know that each business is unique which is why we tailor our insurance policies to meet the needs of your business. One size, in this case, does not fit all.

FIRE & ALLIED PERILS INSURANCE

This covers losses as a result of fire, lightning, explosion, storm, wind, water, hail, snow, earthquake, impact by animals, trees, aerials, satellite dishes, vehicles, aircraft and other aerial devices or articles dropped there-from and malicious damage.

An extension is also available to include cover in respect of ‘Sprinkler Leakage’ should your premises have any automatic sprinkler systems installed. Other extensions of cover are also available so please discuss any queries with us in this regard.

Basis of Sums Insured:

Plant, machinery, fixtures and fittings, all other contents and tenant improvements

The sum insured must be calculated at the new replacement value. Tenants improvements must also be included as well as sprinkler malfunction cover if applicable.

Stock

The sum insured must be at the Cost Price to you. (Raw materials, work in progress and finished products).

Buildings

Always take the following factors into account:
Fire Fighting charges, cost of demolition and removal of debris, professional fees, public authority requirements, new replacement cost of rebuilding the entire building, new replacement values of gates, fences, driveways, parking areas and lighting etc. We would also recommend that accurate escalation and inflation percentages be included

THEFT INSURANCE

Some important factors to be noted with regards to this insurance are:

  • Cover is subject to forcible or violent entry or exit from the building.
  • Theft by an employee (as principal or an accessory) is excluded.
  • Money is not covered and must be specifically insured.
  • Damage caused to the building is limited to R 5 000. (This can be increased.)
  • Theft of goods in the open is excluded.
  • Theft of building fixtures and fittings is excluded.
  • If your cover is subject to a Burglar Alarm Warranty you must ensure that the conditions are complied with.
  • This insurance is not subject to ‘Average’ and the Limit of Indemnity elected by yourself should represent the maximum value of goods that you estimate could be stolen as a result of burglary.

BUSINESS INTERRUPTION INSURANCE

A Business Interruption Claim must follow a loss which would be covered in terms of the Fire & Allied Perils Insurance.

The Quantum of the Business Interruption Claim is established by applying the ‘Rate of Gross Profit’ to the Reduction in Turnover caused by the loss. The ‘Rate of Gross Profit’ is arrived at by applying the policy definition relative to your requirements to past trading results per your financial statements.

Cover is applicable for a ‘Period of Indemnity’ following the occurrence of the loss. The Period of Indemnity is elected by you and should represent the period that you estimate it would take to re-establish your business and re-attain turnover levels applicable, prior to the occurrence of the loss.

As the intention of this insurance is to provide you with your Gross Profit as if a loss had not occurred it is important that the sum insured is accurately based on the Budgeted Gross Profit for the current period of insurance plus, ‘trend’ for the relevant period of indemnity after the renewal date. This ensures adequate cover should a loss occur just prior to the renewal review.

There are various extensions of cover available on this insurance which we would be happy to discuss with you should you require any further information.

Some of these are:

  • Interruption of Public Utilities, ie: water and electricity.
  • Interruption of Public Telecommunications.
  • Interruption as key suppliers or customers premises plus a prevention of access to their premises

BUILDING COMBINED INSURANCE

Where a building is mainly occupied as offices or for residential purposes it is possible to insure same on a ‘Building Combined Basis.’

This basis includes the cover of the Fire & Allied Perils Insurance plus Theft following forcible entry to the building, Loss of Rent following an Insured Loss and Property Owners Liability.
It is important to note however that the ‘Loss of Rent’ cover will cease once the building can be occupied regardless of whether or not it is tenanted.

The basis of establishing the sum insured is the same as applicable on the ‘Fire & Allied Perils’ Insurance.

EMPLOYERS LIABILITY INSURANCE

This insurance provides cover for legal liability for death, bodily injury or illness of an employee occurring in the course of and in connection with his/her employment.

As the Compensation for Occupational Injury and Disease Act would generally cover the above instances, the Employers Liability Cover would apply only in the event that compensation in unavailable in terms of the Act.

PUBLIC LIABILITY INSURANCE

This is a very complex form of insurance and we would recommend that you discuss any specific queries which you may have in this regard with us.

Very briefly, this insurance covers your legal liability to third parties arising out of and in the course of your business in respect of:

  • Accidental death, bodily injury or illness to any person not in your employ.
  • Accidental loss of or physical damage to tangible property not in your custody or control.

The basic forms of cover available are:

  • Property Owners Liability.
  • General Public Liability.
  • Tenants Liability.
  • Products Liability.
  • Defective Workmanship Liability
  • Legal Defence Costs (statutes).
  • Wrongful arrest and Defamation.
  • E.C. Liability.

Other specialised forms of cover which can be obtained are:

  • Product Recall.
  • Contaminated Products Liability.
  • Defective Design/Inefficacy.

ELECTRONIC EQUIPMENT INSURANCE

This insurance covers the electronic equipment at your premises such as computers (including printers, modems, hubs, servers, cabling, software etc), fax machines, PABX systems, photocopying equipment etc.

The cover is on an All Risks basis (but theft must be accompanied by forcible and violent entry to the building) and is limited to your own premises only. It is important to note that loss as a result of wear and tear is not covered.

It is possible to extend the cover to include consequential losses such as:

  • Re-instatement of Data.
  • Increased Cost of Working.

This cover is subject to ‘Average’ and the sum insured must be based on the new replacement values of the property insured

BUSINESS ALL RISKS INSURANCE

This insurance cover is specifically for equipment that is used away from your business premises (such as notebook computers, mobile phones etc) or where specific All Risks Cover is required at your premises (such as closed circuit t.v equipment, security cameras etc.)

Theft from unattended motor vehicles is not covered unless there is forcible and violent entry to the vehicle or any building in which the vehicle is parked.

Also specifically excluded are losses as a result of:

  • Wear and Tear
  • Dishonesty of any employee
  • Mechanical or electrical breakdown
  • Process of undergoing repair, cleaning etc

Other exclusions noted in policy documentation:

If any equipment insured is upgraded or changed we must be advised of the details of the new equipment including serial numbers. Sums insured must be based on new replacement value.

OFFICE CONTENTS INSURANCE

This section covers all contents within your office excluding electronic equipment which should be more specifically insured under ‘Electronic Equipment Insurance’

The sum insured must be stipulated at replacement value and not at the depreciated value.

Theft cover is subject is limited to 25% of the sum insured and is subject to forcible and violent entry.

FIDELITY INSURANCE

This insurance covers losses of money or goods which you may suffer as a result of fraud/dishonesty by an employee which results in personal financial gain for the employee.

The cover can either be arranged on a ‘Named Employee / Position Basis’ or on a ‘Blanket Basis’ covering all employees

It is important to note that cover excludes losses as a result of dishonest manipulation of any computer programme, system, data or software by employees in the data processing unit.

MONEY INSURANCE

This insurance is not subject to ‘Average’ and you elect the Limit of Indemnity of the cover you require.

The Limit of Indemnity you elect should represent the maximum amount of money you would have at risk either at your premises or in transit to or from the bank.

There are important considerations with regard to this insurance, some of which are:

  • Cover in respect of money not contained in a locked safe out of Business Hours is limited to R 1 500.
  • Theft of money by an employee must be discovered and reported to insurers within 14 days of the occurrence.
  • There are limitations on the policy with regard to:

The amount of cover provided in a locked safe out of business hours dependant on the S.A.B.S category grading of your safe.

  • Money in transit depends on whether same is in the possession of employees or a security company. Note: We strongly recommend that you refer to your policy documentation to familiarise yourself with these limitations as non compliance could severely prejudice your claim.
  • Money in the possession of collectors or delivery drivers must be specified.
  • Cover in respect of ‘receptacles’ is limited to R2000. (This can be increased.)

GLASS INSURANCE

This covers internal / external glass including mirrors and sign writing. It is important to ensure that you are adequately covered for the full replacement value as this section is subject to average. Glass cannot be selectively insured and therefore the total value of all the glass, mirrors and sign writing must be included in the sum insured.

This section also provides other costs such as boarding-up frames, fixtures and fittings and the cost of hire for a watchman. The aggregate limit for the above is R 2 000.

GOODS-IN TRANSIT

This insurance covers property belonging to you whilst in transit by road (your own/hired vehicles or third party carriers), by air or by rail. Cover by sea can only be provided by a specific Marine Insurance Policy.

This cover is not subject to ‘Average’ and the Limit of Indemnity required is elected by yourself.

The Limit of Indemnity should represent the maximum value at risk that you would have on any one conveyance at any one time.

Note: Where ‘sold’ goods are being covered it is recommended that the Limit of Indemnity is based on ‘Insured Value’ and the policy noted accordingly.

Some important considerations with regard to this insurance are:

  • Cover can be on an ‘All Risks’ basis or restricted to ‘Fire, Collision and Overturning of the Conveyance.’
  • ‘Hijack’ losses (if on an All Risks Basis) carry a higher excess/first amount payable.
  • Theft (if on an All Risks Basis) from an unattended conveyance is not covered unless accompanies by forcible and violent entry to the conveyance or any building in which the conveyance is housed.
  • Inadequate packing could lead to the invalidation of a claim.
  • Losses due to breakdown of refrigeration equipment are excluded.

MOTOR TRADERS INSURANCE

This insurance covers damage to customers’ vehicles either at or away from your premises. We would however recommend that you contact us should you require further information in this regard.