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Fire and Special Peril
COLFIRE provides coverage for accidental and unintentional loss or damage to commercial properties, and their contents, caused by fire and special perils such as earthquake, hurricane, windstorm, flood & burst pipes.
The Fire Commercial Policy
The fire commercial policy is issued to business concerns and covers commercial property such as:
- Stock in trade
- Furniture, fixtures and fittings
- Plant and machinery
Where an insured chooses a 'fire only' policy, such a policy covers the property against the perils of
- Lightning and
- Explosion of gas used for illuminating or domestic purposes
Where the insured wants to cover the property against more perils than that given under a 'fire only' policy he may choose from a wide range of perils.
COLFIRE offers the following special or extra perils:
Perils of Nature
This includes overflowing of natural or artificial watercourses and bursting or overflowing of public water mains. Loss or damage due to subsidence or landslip is excluded.
Hurricane, tornado, windstorm
Cover includes rain accompanying these perils and flood or overflow of the sea caused by them.
Earthquake and Volcanic Eruption
The cover includes flood and overflow of the sea caused by these perils.
Riot & Strike
Cover relates to loss or damage caused by those disturbing the public peace or by the willful act of strikers or lock-out workers and by the action of the police (or the lawful authority) in suppressing or attempting to suppress the disturbance.
Loss or damage caused by burglary is not covered.
Perils of A Chemical Nature
This goes beyond explosion of gas used for illuminating or domestic purposes. Loss or damage caused by acts of terrorism are excluded.
This covers property lost or damaged by its own fermentation, natural heating or spontaneous combustion.
This refers to a fire emanating from under the earth and is a virtual non-risk in Trinidad & Tobago.
This covers damage by aircraft or aerial device and by vehicles not owned or operated by the insured.
This covers damage caused by bursting or overflowing of water tanks, apparatus or pipes. It does not cover damage to the pipes, tanks, etc.
Cover against bush fire is not included under the peril of fire itself and the peril of bush fire must be requested to cover to operate.
This covers damage by smoke that is sudden, unusual and accidental.
The standard Fire and Perils policy can also be extended to provide more extensive cover, which can be tailored to meet the needs of the insured.
Extension of Premises
Stock and contents are covered whilst at any machine maker's or metal worker's premises, at the premises of customers, agents or suppliers, in transit, at exhibition sites, and at any other premises and locations not occupied by the insured. Cover is usually limited to 10% of the sum insured by the item.
Contents other than stocks are covered whilst temporarily removed for cleaning, renovation, repair or similar purposes. Cover is usually limited to 10% of the sum insured by the item.
Property acquisition (or capital additions)
Newly erected or newly acquired buildings, plant and machinery are held covered pending notification to the insurers. The insured must effect, as soon as possible, appropriate insurance retroactive to the date of erection or acquisition. The maximum liability of the insurer is 10% of the sum insured by the item.
The additional cost of reinstatement or replacement in order to comply with statutory building regulations or by-laws of municipal or local authorities is covered up to 10% of the sum insured on building.
Architect's and surveyors' fees; removal of debris
This covers Architects' and Surveyors' fees incurred in replacement of the building destroyed or damaged by an insured peril.
Major Extensions cont'd
Landlords/ Tenants Clause
Where the risk is increased due to some action by the landlord (or tenant as the case may be) the insured's cover is not affected provided he notifies the insurer as soon as he becomes aware of the situation and pays any additional premium required.
Malicious Damage by Burglars
This covers malicious damage to property arising out of or in the course of burglary or attempted burglary by any person taking part therein. Cover is subject to a limit ($5,000 TO $10,000 is typical).
Accidental Damage plate glass
This covers damage to plate glass and framework up to a specified limit.
Stock Declaration Conditions
Where an insured's stock levels fluctuate often, the stocks can be covered on a declaration basis. The sum insured should be the maximum amount likely to be held at any one time. A provisional premium based on 75% of the sum insured is charged. At the end of each month, the insured must declare the actual stocks held and at the end of the insurance period the total amount is divided by the number of declarations (usually 12) to get the average. The premium is then calculated on the average and compared with the provisional premium, the insured may have an additional premium to pay or may get a refund.
The above explanations give a summary of the type of cover available. For full details, including the exclusions and conditions that apply, please contact us at any of our offices.