The importance of adequate and up –to –date Insurance coverage!

By Michael Catts, Principle at Marsh Advantage Insurance.

As a professional insurance advisor, Michael Catts is constantly reiterating to clients the importance of adequate up- to- date insurance coverage.

When it comes to commercial property owners specifically, there are a number of extremely important aspects to consider.

Adequate Building Insurance cover against Fire and Extraneous Perils (e.g water damage, storm damage, impact by vehicle and vandalism).

The basis of valuation for commercial properties under most commercial insurance policies is defined as the cost of rebuilding or reinstating your property using similar BUT BRAND NEW materials. Therefore what is important to ascertain is the cost of the required materials, the cost of the required labour, engineers and architects fees that will need to be incurred as part of the process, necessary removal of debris costs, and the extra costs of reinstatement due to changes in local by-laws or building codes/regulations. This is the information necessary to determine your BUILDING SUM INSURED for insurance purposes.
Know what exactly is defined under your insurance policy as the BUILDING.
Generally speaking, “BUILDING” includes the foundations, storage tanks, awnings, exterior lights, masts, antennae and aerials, fixed external signs, walls, gates, fencing, pavements and other structural improvements, property owner’s fixtures and fittings, floor coverings, plant, plumbing or wiring services that are within the building.
“BUILDING” does NOT include land, including topsoil, fill and dams, landscaping, reservoirs or canals.

Do I Need Public Liability insurance coverage if my tenant has their own Public Liability?

The answer to this question is quite simply YES. Your tenant’s Public Liability insurance cover provides protection for your tenant if they have negligently caused injury to other persons or damage to other property ARISING FROM THEIR BUSINESS ACTIVITIES AND/OR OCCUPANCY OF YOUR PREMISES. YOUR Public Liability insurance cover on the other hand provides protection for YOU if YOU have negligently caused injury to other persons or damage to other properties ARISING FROM YOUR RESPONSIBILITIES AS THE OWNER OF YOUR PREMISES.