What is it, and why do I need to have a multi-risk commercial, office or hotel and catering insurance?
From Euroteide Insurance, (Insurance Advisors) we would like to inform you in this article on why and how important it is, especially for self-employed entrepreneurs and small businesses, to have a Multi-Risk Business Insurance for your office, restaurant, bar or hotel 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 at Euroteide Insurance (Insurance Advisors), , we will be happy to help you.
The Multi-risk Insurance for Business, Office or Hospitality is an Insurance specially conceived and designed mainly to cover the damage of the Insured goods inside and outside your premises, i.e. damage to furniture, merchandise and stock, machinery, electronic equipment and possible indemnities in the exercise of your commercial activity. It is an insurance policy 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 protection against Third Party Liability in the event of claims from third parties in your capacity as owner or tenant of the premises and for the activity carried out there. Optionally, the Civil liability for the products supplied- (Highly recommended in the Multi-risk Insurance for Hospitality) - 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: fire, explosions, theft or robbery, water leaks, breakage of 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 consequence of the temporary closure of your business due to the claims covered and guaranteed in the policy, etc...
Nowadays these insurances have evolved a lot and have considerably extended their coverage and also include the 24h Assistance in Commerce, indispensable coverage in a good policy that provides quick attention with professionals (locksmiths, plumbers, electricians, etc.), surveillance services in the case of robbery or burglary and leaving the premises unprotected, as well as the Legal Assistance and Protection that offers a team of lawyers to defend the interests of the Insured, etc. More recently, Computer Assistance, etc. have also been incorporated.
The assets insured in the policy, what does the continent and content include and insure?
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 a tenant or lessee and you have carried out refurbishment and improvement works on the Insured premises, you can insure them as Refurbishment Works or as what we call First Risk Buildings.
Remember and take into account that in the Content you must declare those objects of art and decoration that have a special value, for example: (paintings, sculptures, collections, tapestries, carpets, etc.) whose established value exceeds between 2000 € and 3.000 €. The majority of insurance companies exclude such items if their value exceeds these values and they are not declared. Motor vehicles, trailers, caravans, caravans and boats and their accessories, and live animals are excluded from the Contents, except in the case of inventories, and therefore are the object of the Insured activity.
Guarantees and main coverage
The Multi-risk Business Insurance Policy covers and guarantees a wide variety of damages that may occur or be caused to your business. These policies include as a package a series of coverages called basic or automatic and others that are optional or alternative and that must be included and contracted when the policy is taken out in order 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 of a part of your premises due to a fire, the whole premises must be repainted in order to maintain the aesthetic harmony.
- Replacement of files and documents of the business. Depending on which companies the reconstruction of computer files is included.
- Loss or spoilage of food in refrigerators. Due to a breakdown or power failure of more than 6 hours.
- Loss of rent. If you have the leased premises and it is temporarily uninhabitable by a casualty.
- Business shutdown. 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 bail
In the event of problems in a criminal case, you will have lawyers and solicitors to defend and represent you and a capital to pay the bail. It also includes defence and claim services for matters related to labour and administrative issues, breaches of service and supply contracts, as well as those arising from being the owner, tenant or usufructuary of the insured business, among others.
Damage not covered & exclusions
Electrical damage excludes damage to appliances of a certain age as well as to electronic devices.
In the Extensive Risks guarantees: Graffiti and posters. Leaks or seepage due to rain or snow; floods caused by dam or dyke failures.
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.
Surface damage, scratches or chipping on glass, mirrors, marble 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 Multi-risk Business policy, for Offices or Hospitality.
Influenced by several different factors apart from the type of commercial activity of the business, the capital sums insured, the continent and the contents, other factors would be:
- Medium or luxury type of construction.
- Protections against both fire and theft.
- Where the business is located or situated, urban centre, shopping centre, unpopulated area, 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, the payments can be split, as the Insurer admits them, this will imply a surcharge in the 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).
- Value of glass Windows (glass and panes 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 Insurance (Insurance Advisors), is a partner of Securitas Direct, having special prices and conditions for the installation of your alarm.
From Euroteide Insurance (Insurance Advisors) we hope that this information has contributed to clarifying and expanding your knowledge about what is a Multi-Risk Business Insurance, for Offices and Hospitality, its many benefits and advantages when it comes to protecting your business, company, etc.. 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 to be at your side throughout the life of your insurance and to provide you with a quote for the many different general insurance products that we sell, as well as savings and investment products. When you need any type of insurance, do not hesitate to contact Euroteide Insurance (Insurance Brokers and Consultants), we are always at your disposal.