A Combined policy specifically caters for a range of small manufacturers and wholesalers, with options to cover a range of key covers. The product even allows you and the client to select what cover matters most.
The key difference with the commercial combined policies to the package policies is that commercial combined policies are modular policies to suit more complex insurance needs that cannot fit in a more standard ‘package’ policy. This means that businesses can select the cover that they need, rather than have a range of covers included as standard.
Key Points of Cover
- Buildings Insurance
- Contents, Plant and machinery Insurance
- Stock cover
- Business Interruption
- Public Liability
- Products and Employer Liability
- Legal Expenses
- Many more add-ons and extensions available
Unspecified Contents, Plant and Machinery
This section will cover all of the business contents, plant and machinery, so everything that would fall out of the property if you were to turn it upside down. For example, fridges, freezers, tables, fork-lift trucks and machinery. The exception is stock, i.e. goods that you sell to your customers. This is covered in the next section; Stock and Target Stock. Unspecified contents cover would protect the policyholder against a wide range of All Risk perils from Fire and Theft to flood, water and storm damage.
Stock Cover
Stock is deemed to be anything that is sold by the business, for example Fruit & Veg in a grocers. The cover in this section should be enough to cover the maximum stock held at any one time, cover can also be place for stock in the open. As per other sections, this section would protect the policyholder against a wide range of All Risk perils from Fire and Theft to flood, water and storm damage.
Target/Specified Stock
This is simply an extension of the Stock cover section, however this covers more specific stock, usually because of a higher theft attractiveness rate. I.e. Wines & Spirits, Cigarettes & Tobacco, Clothing or Mobile Phones. It is vital that this type of stock is included in the right section, to ensure Insurers will pay claims out as required. If in any doubt always check.
Public Liability
Public Liability Insurance is in place to protect the policyholder and their customers. As the owner the Policyholder is responsible for making sure the shop is as risk free as possible but accidents can still happen. Public liability insurance will cover loss, damage or injury to a third party on your premises. For example – if a customer were to slip or trip and injure themselves, your PL cover would pay out should legal action be taken.
Employers Liability
In a similar way to Public Liability, this is to protect you against claims from your own employees. This is a legal requirement, so should always be carried when staff are employed, even if volunteers or family members.
Product Liability
Products Liability insurance covers the cost of compensation claims if someone is injured or their property is damaged by a product that you’ve sold. In certain situations, you may be liable even if you haven’t manufactured the product. Examples could include food poisoning or faulty products causing harm to the user.
Business Interruption
This cover protects against any loss of gross income due to a break in commercial activity following an insured material loss at the premises. For example, a flood damages your premises, and you are unable to trade for 8 months. This section would provide cover for lost income in that period. A degree of Business Interruption cover may be included as standard, please refer to the quote documentation.
Deterioration of Stock (Frozen Stock)
As with most machinery, refrigerators and freezers are subject to wear and tear, and they also have wires that could accidentally be knocked, or be subject to a power cut. There are a number of reasons why a freezer might suddenly stop working but not be classed as an ‘insured peril’. This section looks after claims for the refrigerated/frozen food in that freezer when it stops working. For some businesses this might be thousands of pounds of stock. This section would then protect you if the freezer fails, and the contents of the fridge/freezer are lost.
Money Cover
This can provide protection for loss of money, whilst on the premises during business hours, overnight in a safe, or whilst in transit to the bank.
Goods in Transit
Simply put this provides cover for stock in transit, for example between a cash and carry and the policyholder’s retail unit.
Terrorism
Extends policy cover to include the damage from a terrorist act.
Legal Expenses
This section provides support with legal fees when taking legal action against a third party, should cover be required you should let your adviser know.