What type of insurance do I need to cover my business?

• Commercial insurance includes three main categories of insurance namely Property insurance, Liability (Casualty) insurance and Motor insurance. Your business may not need all of the types of coverage that are available. Your Beacon DIRECT liaison will be able to advise you as to the exposures that are typical in your industry and propose coverage options that address your circumstances. It is your responsibility, however, to select the options you need to adequately cover your business exposures.

How will underinsurance affect my claim?

• In the settlement of a loss underinsurance results in you becoming responsible for the part of the replacement value (Value at Risk) which you failed to insure. This is known as the “application of Average” and is determined by calculating the ratio of the limit of insurance you are carrying on the building or property (Sum Insured) to the limit the policy requires you to carry (Estimated Replacement Cost). For example, if the cost to replace a building is $100,000 and the policy requires you to insure for 100%, you should carry $100,000 on that building. If you have chosen to insure the building for $80,000, the policy will only cover 80% ($80,000/$100,000) of any covered loss, less the deductible.

After an inspector viewed my property, I received a list of “recommendations” from Beacon. What are my responsibilities with respect to this list?

• Among the conditions on which your policy was issued is a requirement that you shall use ‘reasonable diligence and care’ to keep the premises and property insured in a proper state of repair. You are also required to take ‘such additional precautions for the prevention of loss or damage’ to the insured property. The property survey and resultant recommendations are intended to assist you in adhering to these requirements and thus minimise the exposures to which your operations are subject. The overall quality of your risk is thereby improved and your likelihood of loss reduced. Implementation of these recommendations also ensures that you enjoy the best terms and conditions that Beacon can offer.

What are the Benefits of Liability Insurance?

• General Liability Coverage includes:
  • Bodily Injury Liability Coverage: Protects you in case injuries occur to other people resulting from your business operations.
  • Property Damage Liability Coverage: Protection in case damage occurs to the property of others as a consequence of your business operations.

What are the benefits of Workmen’s Compensation/Employers Liability Insurance?

• =Workmen’s Compensation/Employers Liability Insurance was created to ensure that workers continue to receive their wages and recover some of their medical expenses in the event of temporary disability resulting from a job related injury or sickness. It also caters for the payment of a lump sum in the event of Death, Dismemberment or Permanent Disability. The Workmen’s Compensation Act 24 of 1960 Chapter 88:05 makes it mandatory that employers provide this cover to all workers. The policy also covers the employer’s liability in common law to the worker for negligent behavior on the employer’s part, for example not providing a safe working environment.

What are the benefits of Commercial Auto Insurance?

• In case you’re sued as a result of an auto accident.
  • Collision Coverage: Helps cover physical damage to your vehicle due to collision or overturning.
  • Comprehensive Coverage: Helps cover physical damage to your vehicle due to fire, theft and glass breakage.
  • Rental Reimbursement Coverage: Helps cover the cost of a replacement vehicle for a specified period of time when your vehicle is disabled due to an insured loss.