An introduction to Commercial Combined Insurance

Most types of businesses need a variety of insurance to keep their business operating smoothly in the event of loss or damage to property or a claim for damages made against them.

Commercial Combined insurance provides cover for the different types of cover you may need under one policy and can be tailored to your specific requirements.

Do I need this type of policy?

Businesses usually own property of some description – whether it’s the buildings you work in or the stock, tools or machinery you have inside – can your business afford to replace these if they were damaged due to a fire or flood or if they were stolen?

Some covers are a legal requirement (such as Employers Liability) and others may be required to join your trade body (such as Professional Indemnity) or you may even have to meet certain conditions to win that contract you have bid for (such as having Public Liability insurance). Whatever your business, it makes sense to obtain protection for your business and your customers.

The main types of cover provided by a Commercial Combined are as follows;

• Material Damage

Provides cover for the buildings and other property (such machinery plant, tools, stock & office equipment) at the business premises

• Business Interruption

Pays you for losses incurred because of interruption to your business due to damage to buildings or property insured under the material damage section. Payments may be based on your gross profit or revenue.

• Money

Covers damage/loss of money whilst at the premises, in a safe, in transit or at the private dwelling of authorised persons.

• Employers Liability

A legal requirement for anybody who employs others. This section will cover you for any compensation claimed by your employees for injuries or illnesses suffered as a result of working for you.

• Public Liability & Sales/Service Indemnity

Provides cover for compensation claimed by a third party (for example your customers or members of the public) if you cause injury to them or damage to their property. It is not a legal requirement to have Public Liability insurance.

• Goods in Transit

Covers loss or damage to property whilst in transit. Cover can include property in your own vehicles and/or by other carriers

• Professional Indemnity

This will cover you in the event that one of your customers makes a claim against you for damages or losses they have incurred as a direct result of work you have completed or advice you have given.

• Fidelity

This section covers you for loss of money or goods as a result of theft by an employee, including acts of fraud or dishonesty by an employee with the intent of making financial gain.

• Terrorism

Damage &/or losses caused by terrorist acts are not typically covered under other standard sections of commercial insurance policies. This section essentially bridges the gap in cover to provide cover for damages or losses as a result of an act of terrorism.

• Personal Accident

This is sometimes included within the Money section under Assault cover. It pays you a set amount as defined in the policy schedule if you or one of your employees suffers injury caused by theft/violence. You may also have a separate Personal Accident section that covers injury by other (accidental) means. In either section, the amount paid may be a lump sum or a weekly benefit depending on the type of injury sustained.

• Commercial Legal Expenses

This covers Legal Expenses, Awards of Compensation, Jury Service Allowance and Witness Attendance Allowance incurred in pursuit or defence of any claim brought by or against you for events defined on your schedule – for example Contract Disputes, Employment Tribunals, Taxation Proceedings, Criminal Prosecution Defence, Property Disputes, Personal Injury or Jury Service Allowance.

• Directors & Officers Insurance

Directors and Officers insurance will pay for costs and damages claimed personally against the directors, partners and principles of a business. It covers sums which the insured person is legally liable to pay in respect of defence costs, damages awarded by a court and settlements (with the prior agreement of the insurer). Claims may arise from employees, shareholders, regulators and customers relating to Health and Safety breaches, negligent acts/errors and breaches of duty.

• Cyber Cover

This section will cover you for costs incurred as a result of security breaches of IT systems. Costs may include; Investigations into the security breach. Losses incurred due to interruption of normal business activities. Restoration of data following security breaches. Extortion losses (money paid as a direct result of a threat to impair access to your computer systems or to destroy, corrupt or erase your data).

Policy cover may vary depending on the exact policy you have. Always ensure you have read and understood your policy documents. If you need any clarification, be sure to ask your broker.