Commercial Buildings and Contents
Any type of business, be it a sole trader, small to medium enterprise or large business requires adequate cover for all its physical assets. This would include all Buildings as well as all Contents comprising furniture, equipment, machinery, stocks and other general content.
Such an insurance policy would typically include cover on an ‘all-risks’ basis, including theft, fire, lightning, malicious acts, flood, storm, escape of water, earthquake and other similar perils.
The sum insured for the buildings section must always be the re-building cost and not the actual market value.
Contents are commonly covered either for ‘cost of repair/replacement basis’ or else on a ‘reinstatement basis’.
Machinery is normally insured on a new for old basis – this means that the sum insured would have to reflect the replacement cost of new items.