Fire and special perils
It is relatively rare to find this type of cover as a separate policy, in view of the wider covers that are readily available
The standard fire policy covers damage to property caused by:
- fire, excluding explosion resulting from fire; earthquake or subterranean (below ground) fire; its own spontaneous fermentation (ignition) or heating or its undergoing any heating process or any process involving the application of heat
- lightning, and
- Explosion, restricted to explosion of boilers or gas used for domestic purposes only.
Commercial All Risks
A commercial all risks policy is an alternative and wider basis of cover to that provided by a fire and special perils policy. Cover is provided for accidental loss or destruction of or damage to the property insured. All types of loss or destruction of or damage to the property insured are covered, provided the cause is not specifically excluded from the policy.
Theft
A theft policy is primarily designed to covert the contents of the business premises. Damage to the buildings occurring during theft or attempted theft is also covered. Specific items and sums insured often apply to different types of stock depending upon its attractiveness to thieves.
The term ‘theft’ is defined in the Theft Act 1968, which states that a person is guilty of theft if they dishonestly appropriate property belonging to another with the intention of permanently depriving the other of it. This legal definition is, however, wider than that for which insurers are prepared to offer cover. Instead a theft policy will typically provide cover for theft involving entry to or exit from the premises by forcible and violent means. Cover also includes hold-up (theft accompanied by assault or violence, or the threat of it) irrespective of whether forcible entry takes place.
Cover also includes:
- breakage of glass
- replacement of locks following the theft of keys
- temporary removal of items (other than stock) for cleaning or repair, but remaining in kenya
Cover is often arranged on a first loss basis.
Glass
Cover is provided for all forms of fixed glass (such as sheet, silvered, wired and ornamental lettered glass) in windows, doors, fanlights, showcases, mirrored glass and glazed partitions.
Cover is on an ‘all risks’ basis and includes the cost of boarding up damaged glass until it can be replaced. Damage to window frames is also covered.
Money Insurance
Money is defined in the policy and typically includes cash, bank and currency notes, cheques, postal and money orders, gift vouchers, postage stamps, national insurance cards and luncheon vouchers.
Cover is on an ‘all risks’ basis and includes damage to safes or strong rooms caused theft or attempted theft.
There are a number of different headings of cover, each of which has a separate policy limit:
- in transit or being carried by the insured or their employees
- on the insured’s premises during business hours
- in a bank night safe
- in a locked safe or strongroom out of business hours
- on the insured’s premises, not in a safe, out of business hours
- in the private residence of any principal or employee of the insured
- in the custody of collectors or travellers while in transit
- in the custody of a professional carrier or security company
Goods in Transit Insurance
Cover is provided for accidental damage to the insured’s goods whilst in transit, either by own vehicles or by hauliers’ vehicles, rail or post. A limit per vehicle or per consignment applies. There may also be a limit any one occurrence.
