What is it, and why do I need to have multi-risk commercial, office, or hospitality insurance?
From Euroteide Seguros, (Insurance Advisors) We wish with this article to inform you of the why and the importance that it has, especially for self-employed entrepreneurs and small businesses, having a Multi-Risk Retail Insurance, for your business or office, restaurant, bar, or hospitality business. All this for various reasons, including the significant investment that this entails and the enormous effort and sacrifice that you have dedicated to creating your business and economic livelihood.. In any case, if something is not clear to you and you need additional information, do not hesitate to contact us Euroteide Insurance (Insurance Advisors), we would love to help you.
The Multi-Risk Commerce, Office or Hospitality Insurance is an Insurance specially thought and designed mainly to cover the damages of the Insured goods inside and outside your premises, that is to say damages to furniture, merchandise and stocks, machinery, electronic equipment and the possible indemnities in the exercise of your commercial activity. It is an Insurance belonging to the Multi-risk branch.
Mission and definition of multi-risk insurance for trade, offices, or hospitality premises
It especially guarantees the payment of compensation, the costs of repair or replacement of your property for: Damages that may arise or suffer from the structure of the premises subject to the activity and its fixed elements, understanding as such those that cannot be detached from the construction without damaging it or without being damaged.
It includes protecting you a capital by the Civil Liability in case of claims from third parties in your capacity as owner or tenant of the premises and for the activity that takes place there. Optionally, the Civil liability for the products supplied- (Highly recommended in Hospitality Insurance Multi-risk) - the services provided inside and outside your establishment and also possible claims against your employees through the Employers liability.
A wide range of risks are covered and guaranteed, basically: fires, explosions, robberies or robberies, water leaks, broken windows, glass and signs, damage due to atmospheric causes such as rain, wind, hail, floods, damage to electronic equipment . Also the economic losses that you may suffer as a result of the temporary closure of your business due to the claims covered and guaranteed in the policy. etc…
At present, these Insurances have evolved a lot, considerably expanding their coverage and also include 24-hour Trade Assistance, essential coverage in a good policy that provides quick attention with professionals (locksmiths, plumbers, electrician, etc.), surveillance services in the case of robberies or moon landing and the premises remain unprotected, as well as the Legal Assistance and Protection offered by a team of lawyers to defend the interests of the Insured. More recently, Computer Assistance, etc. have also been incorporated.
The assets insured in the policy, what does the continent include and insure and content?
In this type of Multi-risk policy we can Insure under the structure of the premises (What is called in insurance terms the Continent) and all the goods, furniture and decoration, machinery, electronic equipment and stock inside (What is called the Content). If you are tenants and / or tenant and have carried out or carried out refurbishment works and improvements to the Insured premises, you can insure them As Reform Works or as what we call First Risk Continent.
Remember and keep in mind that in the Content. Those objects of art and decoration that have a special value must be declared, for example: (paintings, sculptures, collections, tapestries, rugs, etc.) whose established value exceeds between € 2000 and € 3.000. Most of the Insurance Companies exceeding these values and not declared are excluded. Excluded from the Content are motor vehicles, trailers, caravans and boats and their accessories, and live animals, except in the case of inventories and therefore are the object of the Insured activity.
Guarantees and main coverage
The Merchant Multi-Risk Policy They cover and guarantee a wide variety of damages that may occur or be caused to your business. These policies include a series of coverages called packages basic or automatic and apart from others that are optional or alternative and that must be included and contracted when the policy is made for them to be covered.
Summary of the main Guarantees covered in the Multi-Risk Insurance for Shops, Offices and Hospitality:
- Fire, explosion, lightning strike, electrical damage from abnormal currents and power surges, smoke damage, as well as expenses to reduce them.
- Atmospheric phenomena, wind, hail, rain and snow, floods, and others.
- (Acts of vandalism, vehicle impact, etc.), usually called Extensive Risks or Extension of Guarantees.
- Water damage: accidental leaks, failure to close faucets, failure of conduction systems.
- Breakage of glass and signs, including mirrors, sanitary ware, marble and ceramic glass.
- Theft and Plundering (robbery), as well as damage suffered as a consequence or attempted robbery.
- Civil liability against Third Parties, resulting from damage caused as a result of the property of the premises or the development of the activity itself. This guarantee includes, we have several insurance options, such as, Employer Civil Liability against employees or Civil Liability for Products or Services provided, coverage of importance and of greater relevance according to the activity carried out.
- Damage to electronic equipment. This is an optional guarantee that covers the damages that the electronic equipment available to the business may suffer as a consequence of causes inherent to it, including electrical overload.
Expenses originated when an accident occurs
- Provisional accommodation. When your business becomes temporarily uninhabitable due to the loss, as well as the transfer of the assets.
- Aesthetic damage to its restoration. For example, if after reconstruction and rehabilitation part of your premises due to a fire, the entire premises has to be repainted to maintain aesthetic harmony.
- Replacement of files and documents of the business. Depending on which companies the reconstruction of computer files is included.
- Food loss or deterioration in cold rooms. Due to a breakdown or lack of electricity supply greater than 6 hours.
- Loss of rent. If you have the leased premises and it is temporarily uninhabitable by a casualty.
- Business stoppage. If, as a consequence of a claim covered by the Insurance, the business must remain closed, compensation is received according to the daily amount that has been contracted in said optional guarantee.
- Trade Assistance Service. You will have at your disposal professionals of locksmiths, plumbing, electricity and even surveillance 24 hours a day.
Legal assistance and legal protection and bonds
If you have problems in a criminal case, you will have lawyers and attorneys to defend and represent you and capital to pay the deposit. It also includes defense and claim services for matters related to labor, administrative matters, breaches of service and supply contracts, as well as those derived from being the owner, tenant or beneficial owner of the insured business, among others.
Damages not covered & exclusions
Electrical damages are excluded those caused in devices of a certain age, as well as in electronic devices.
In the Extensive Risks guarantees: Graffiti and posters. Leaks or leaks from rain or snow; flooding caused by dam or dam breakage.
The water damage guarantees exclude the cost of locating and repairing the fault when there has been no damage to the insured property. Repair of faucets or appliances is excluded.
On surface damage, scratched or chipped, on glass, mirrors, marbles or glass ceramic. Breakage of light bulbs or fluorescent lamps is excluded.
Theft of property that is on terraces or outdoors. In the theft guarantee, it is crucial to review the limits guaranteed in the Insurance, since they can generally be expanded to adapt them to our needs.
The professional civil liability guarantee is not included.
WHAT IS THE PRICE OR PREMIUM OF MULTI-RISK INSURANCE?
The price in Insurance terminology is the Insurance premium. There are different variants or factors that will determine the price or the premium of the Trade Multi-risk policy, from Office or Hospitality.
They influence several and different factors apart from the type of commercial activity of the business, the insured capital, Continent and Content, other factors would be:
- Medium or luxury type of construction.
- Protections against both fire and theft.
- Where the Commerce is located or is located, urban center, shopping center, uninhabited, etc.
- If there is a fire service in the locality or nearby.
- Age of the building (Date it was built).
- Type of activity or commercial business that is developed is not the same as a haberdashery, a hardware store, etc.
- Protections against fire, such as theft: metal locks, reinforced door, alarm, surveillance, etc.
The average price of this type of Multi-Risk Insurance is currently around € 375 to € 450, although we can find them from € 165, but with very basic coverage for certain commercial activities.
Depending on the price or premium of the Insurance, payments can be divided, since the Insurer admits them, this will imply a surcharge in its price.
The total price of the Insurance is obtained after calculating its price or net premium without taxes and applying the following surcharges and taxes to obtain the premium or total price:
- Consortium - Extraordinary risks
For damage to property, the surcharge established for Offices amounts to 0,12 per 1.000 and 0,18 per 1.000 for Businesses with capital insured for material damage.
- Surcharge Liquidation Insurers, (formerly the Clea), Commission of liquidation of Insurance Entities.
Surcharge intended to finance the settlement activity of Insurance Entities, which implies the purchase of credits from creditors for insurance contracts. The type of surcharge will consist of 3 per 1.000 of the commercial premium.
A tax on insurance premiums or prices that is paid to the Treasury. It amounts to 6% of the commercial premium.
- Municipal Tax
The city council tax for the provision of the fire service. It amounts to 2,50 percent of the commercial premium.
WHAT IS THE INFORMATION THAT EUROTEIDE INSURANCE NEEDS TO QUOTE A BUDGET?
- The complete address (street, number, town, province of the Autonomous Community). DNI of the person requesting the quote.
- The square meters of the premises, establishment, and the year of construction of the building, house, or shopping center.
- Content Value (see the insured assets).
- Figure to Insure against Theft (Sum of what can be raised or increased in the event of theft).
- Glass value Crystals (glasses and crystals in vertical position)
- Civil Liability (inform if there are canopies, awnings, signs and their value, value of the terrace furniture).
- Type of protections on doors and windows against theft and fire. To guarantee theft coverage, it is necessary to provide us with precise information on the protection measures, since the Insurer will accept the risk based on them and will be an essential element in pricing the corresponding insurance premium or price. Normally, the security measures requested by the Insurance Companies are:
- Locals on public roads or at street level: Metal closures or bars in all gaps or in any case double or triple layer armored glass. If you also have other security measures, such as an alarm with connection to a private security and police center, the premium will be cheaper, depending on the type of risk involved.
Euroteide Seguros (Insurance Advisors), is a partner of Securitas Direct, having special prices and conditions for the installation of your alarm.
From Euroteide Seguros (Insurance Advisors) we hope that with this information has contributed to clarifying and expanding your knowledge about what is a Multi-Risk Trade Insurance, Office and Hospitalityof its many benefits and benefits when it comes to having your business, company protected. We are at your disposal to help you and advise you to choose the best Insurance with the best companies and with the guarantees you need. For us it is a privilege always be by your side in the life of your Insurance and prepare a quote for the very diverse General Insurance that we commercialize and in savings and investment products. When you need any type of insurance, do not hesitate to think and contact Euroteide Seguros (Insurance Brokers and Consultants)You always have your disposition for us.