A standard business interruption policy in Kenya only covers losses which are a result of insured damage at the insured’s own premises. However, the insured’s business may also be affected by damage at third party premises for which a number of extensions to cover are available. Such extensions are subject to an additional premium but not to the material damage warranty.
The most common Covers include:
- Cover for losses resulting from damage at the premises of suppliers
- Cover for losses resulting from damage at the premises of named customers.
- Cover for losses resulting from damage to the property of the insured whilst in transit
- Cover for losses resulting from access to an insured’s premises being prevented due to damage to nearby premises. Cover may be extended to include prevention of access due to a bomb threat
- Cover for losses resulting from damage at the premises of a public utility
- Cover for losses due to the occurrence of a notifiable disease, vermin, defective sanitary arrangements, murder and suicide
It is important to note that an inner policy limit applies to the cover provided by each of these extensions.
