Commercial insurance, as the words suggest, covers various types of sections that make up or form part of a business or commercial entity.

The various sections under this type of policy are as follows:

PROPERTY INSURANCE – This covers you for loss of and/or damages to your property. For fire, lightning, storm and other weather elements defined as perils.

Buildings, machinery, stock and office contents are covered under this section.

BUSINESS INTERRUPTION (LOSS OF PROFITS) – This covers you for a loss following interruption of or interference with the business, as a consequence of damage occurring during the period of insurance at
the premises in respect of which payment has been made or liability admitted under:

The fire section, buildings combined section, office contents section or any other material damage insurance covering your interest.

An example of this type of insurance will be cover that is provided when a fire forces you to close your business for a period whilst the structure is being rebuilt or waiting for replacement machinery.

This will cover you for the loss of income and expenses resulting from the property loss.

THEFT OR BURGLARY INSURANCE – This covers you for any theft following a break in to your property.

This has to be accompanied by forcible and violent entry or threat of violence.

GLASS COVER – This covers you for loss or damage to internal and external glass (including mirrors), signwriting and treatment thereon at the insured’s premises.

An example of this would be shop windows such as show rooms and the like.

MOTOR – This covers any loss or damage to any vehicle and accessories, that is described in the schedule. This also covers the company against any 3rd party claims that may be lodged against the business as a result of damage to a 3rd party vehicle.

The other sections that are also offered under this type of insurance are the following:

Fidelity insurance, goods in transit, business all risks, accidental damage, money and electronic equipment.

ENGINEERING – This is a specialist type of insurance that is offered for engineering risks.

This covers risk under manufacturing, distribution and construction, which includes:

  • Machinery risks
  • Computer and electronic risks
  • Construction, plant and machinery risks
  • Contract works (construction and erection)
  • Associated public liability

This type of insurance is a complex and diverse area of specialization that requires expertise and specialized cover.

PUBLIC LIABILTY INSURANCE – This is a specialized type of insurance that is offered to safeguard a company against any lawsuits that may be laid against them.

Even though a company should do everything it reasonably can to prevent liability, it is simply not practical for a business to anticipate and prevent every possibility.

Therefore the following types of Liability insurance are offered:

General Liability – This covers many of the liabilities arising out of harm or damage to other people or property. This is the most common type of liability as it can occur on a daily basis due to negligence that may have taken place

Directors and officer’s liability – Company’s directors and officers may be held legally liable if they have not operated the company properly. These may include Shareholders, creditors, employees, customers, suppliers, state authorities and SARS.

Employment practices liability – Covers the company’s legal expenses and any awards that are made against it by the CCMA, bargaining councils and Labour courts for unfair labour practices.

Professional Indemnity – This covers the company for any financial losses that may arise out of professional services or advice.

Cyber Risk -This gives the company cover against any risks that may occur due to a computer virus that may affect a computer network as well as any hacking that may have occurred.

Commercial crime insurance – This policy protects the insured’s money and other property against theft by employees. It also covers malicious damage and theft committed by non-employees through computer hacking, extortion and fraudulent transfers.

There are also other types of specialist liability products, such as Pension Fund Trustee Liability, Medical Malpractice cover and Financial Institutions bond insurance.