Contents insurance covers the items inside your buildings from loss due to fire, weather, natural disasters, impact from animals, and similar events – including office contents, stock & materials in trade, plant & machinery, and miscellaneous items. Most insurance companies call these sections “Office Contents” and “Fire”.
Any business that has any of the following items should consider contents insurance:
Your insurance policy will have its own specific list of insured events and exclusions, therefore it is best to check with your insurer or the policy wording to confirm the details of your Contents insurance policy.
Some commonly covered and not covered items include:
This is typically the total cost of replacing a business’s contents, including but not limited to:
It is important to include any additional import, installation, and similar costs – if businesses do not, they could be at risk of under-insuring their contents.
Fire
You will be covered for all of your goods. If you understate the true value of your goods, the insurer will not Let’s say the true replacement value of your contents is R100,000 but it is only insured for R50,000.
If a claim was made for a loss you would only be able to recover an amount based on the ratio of the sum insured to the replacement value. Meaning, if there was a loss of R40,000 the amount that could be recovered would be calculated using the following formula for Average:
R50,000 (the amount insured) / R100,000 (true replacement value) x R40,000 (claimed amount) = R20,000
You would only receive R20,000 from your insurer to cover a loss of R40,000.
Underinsuring your contents really just isn’t worth it in the long run!
Generally, the higher the level of risk that your business is exposed to, the higher the cost of the premium.
Yes, there is cover automatically included, ranging from R25 000 to R100 000.
Items such as furniture (desks, chairs, tables, fridge, kettle, etc.), books, manuscripts, plans, etc. Stationary electronic items such as scanners, printers, computers that belong in the office would need to be specified under the Electronic Equipment with their set sum insured and description. If there are items which would be taken away from the premises noted on the policy, such as a business cellphone, laptop, tools, or any other items which are used outside the premises this would need to be noted under Portable Possessions which provides worldwide cover.
Yes, you can cancel your policy with immediate effect at any time. Insurance company will have to give 30 days’ notice to clients if they wish to cancel from their side.
