Buildings, machinery plant and stock are the tangible assets of your company. Prudence dictates that you protect them, as they are means by which you gain your profitability.
The acceleration of replacement costs caused by inflation has meant that a close vigil has to be kept on the adequacy of sums insured. An inadequate property insurance programme could result in underinsurance and unnecessary expenditure. Let us advise you on how to obtain optimum insurance cover at the most economical cost.
Types of Property Policies
Fire and Allied Perils
Fire and Allied Perils insurance will provide cover for any damage to your interests incurred at the premises used by you for carrying on your business as a result of fire, lighting and explosion, damage caused by aircraft, riot and malicious damage, earthquake, subterranean fire, storm, tempest or flood, escape of water and impact by motor vehicles. But this risk does not include Burglary and Accidental Damage, and does not include machinery breakdown.
Business Interruption insurance will provide cover for any loss of profits or revenue following interruption of or interference with the business as a consequence of a loss which is indemnifiable under a Fire & Special Perils Policy or an Industrial All Risks Policy.
Commercial All Risk
This type of coverage is designed for the insurance of all buildings. The policy, which includes coverage for Fire and Allied Perils insurance, will provide cover for any damage to your interests incurred at the premises used by you for carrying on your business as a result of fire, lighting and explosion, damage caused by aircraft, riot and malicious damage, earthquake, subterranean fire, storm, tempest or flood, escape of water and impact by motor vehicles. The major difference between Commercial All Risk (CAR) and Fire and Allied Perils is that CAR includes burglary and accidental damage, the policy rarely includes machinery breakdown.
All types of machinery, plant, mechanical equipment and apparatus may be covered under the machinery breakdown insurance. Machinery Breakdown covers unexpected occurrences that can damage equipment and cause expensive production delays or interrupt cash flow. Steam explosion, machinery breakdown and electric arcing are not insured in a standard “all-risk” property policy.
The policy serves as an ‘accident’ insurance for the machinery. It covers unforeseen and sudden physical losses or damages to the insured items necessitating their repair and/ or replacement. Faulty design faults at the workshop or in erection, defects in casting and materials are also insured. Usually, such faults are discovered after the manufacturer’s guarantee has expired and there is no possibility of recourse. Faulty operation, failure of safety systems, lubrication systems, control systems, lack of skill, negligence are also insured.
Tearing apart on account of centrifugal force, despite not being a very frequent cause can still result in heavy damage to the machine and the surrounding area. This risk is also covered under the conditions of marine insurance. Losses occurring due to short circuits, excess voltage, defective insulations, corona discharge and mechanical stress are also insured. Overheating of the tubing resulting in destruction of entire piping system is also an insurable risk and, last but not the least, besides production and operational faults, the policy also covers damage due to the human element.
Contractors All Risks
Contractors All Risks insurance (also known as Contract Works insurance) is an insurance policy especially designed for builders and a number of other traders working at a contract site. Contractors All Risks insurance can include cover for public liability, contract works, own plant, and hired-in plant.The main part of the Contractors All Risks insurance is the contract works section which provides cover for the property being worked on (e.g. new house, etc.). However, cover for the existing property is excluded (e.g. the existing structure when building an extension) and must continue to be insured under its own insurance cover.
This insurance policy covers all contingencies arising out of actual loss/ damage to the insured property caused by burglary/ housebreaking as well damages caused to the premises by the burglars during burglary or attempts at burglary.
In the business sector, the motor vehicle is a tool of trade contributing to the earning capabilities of the company. Whatever your circumstances, it is an asset which requires proper protection. FFK can provide “tailor-made” protection to meet your requirements.
Types of Auto Insurance
Comprehensive Coverage Commercial
Commercial comprehensive covers company owned vehicles used for business/commercial purpose. This policy will cover the insured against accidental loss or damage to your vehicle caused by collision, overturning and miscellaneous acts. The insured legal liability for damage to property, and injuries or death caused to other persons are covered. Similar to Private Comprehensive, this policy does no cover every eventuality, however, it is the most extensive available.
Third Party Fire and Theft
This provides cover for financial loss or damage suffered by the insured to a privately owned motor car inflicted by fire and / or theft. This cover also extends to the financial liability for damage to other parties and bodily injury caused to others. Cover is subject to the limits stated in your policy.
Third Party Commercial
This covers motor vehicles owned by a company and being used for business/ commercial purposes, it covers damage to third party property and bodily injuries to other persons. It does not cover damage to your vehicle. Cover is subject to the limits stated in your policy.
Insurance transcends all business activities in commerce and industry. It is quite obvious therefore, that from time to time special situations could arise that call for unusual types of cover.
The insurance industry has already developed special schemes catering for a particular segment of the business community, such as:
Bankers Blanket Bond and Electronic and Computer Crime insurance
These are products specifically designed to protect the insured from any acts of fraud or criminal action which would cause a direct financial loss and mitigate the damage for some of the activities may have on the asset base of these institutions. If not, securely protected institutions could suffer the loss of reputation, cash flow problems, regulation intervention and loss of market share.
Professional Indemnity /Errors and Omissions for the professional
This type of liability is also known as malpractice insurance and issued to wide range of professionals.
The main purpose of this policy is to protect a professional man against his legal liability towards third parties for injury, loss or damage, arising from his own professional negligence or that of his employees.
This type of coverage safeguards against a Customer’s claiming that your company did something incorrectly on their behalf which lead to a financial loss or harm in some manner. This type of insurance is necessary for anyone who gives advice, makes recommendation or design solutions for a client. Professionals who usually purchase E & O are Architects, Surveyors, Consulting Engineers, Lawyers, Doctors, Web/Program Designers, consultants, Ad Copywriters, Telecommunication Carriers, etc.
Directors & Officers
The duties of a Director are wide ranging and sometimes complex. This policy provides financial protection to directors and officers if they are sued or held liable in conjunction with the performance of their duties as they relate to the company.
- Why D&O? First, you need Directors & Officers Insurance because claims from stockholders, employees, and clients will be made against the company, AND against the directors of the company. Secondly investors and members of your board of directors will not be willing to risk their personal assets to serve as a corporate director or officer, if not protected.
This is purchased by agricultural producers, including farmers and others to protect themselves against either the loss of their crops due to natural disasters, such as hail, drought, and floods, or the loss of revenue due to declines in the prices of agricultural commodities.
i.e. Performance Bonds, Construction Bond, Bid Bonds, etc.
Covers losses from specific financial transactions and guarantees that investors in debt instruments, such as municipal bonds, receive timely payment of principal and interest if there is a default. Raises the credit rating of debt to which the guarantee is attached. Investment bankers who sell asset-backed securities, securities backed by loan portfolios, use this insurance to enhance marketability
Fidelity Guarantee Insurance
Most businesses have a checks and balance and supervision. Fidelity Guarantee allows the insured protection of financial loss through embezzlement from its employees. This could come in the form of money or stock. FFK offers Fidelity Solutions to enable the insured to close the gap and have a sense of financial security
For Financial Institutions protecting data is a high priority. But as PC, LAN (Local Area Networks) and wireless internet became more popular the task of protecting this information became increasingly more difficult. The ever-changing technology community has forced business to look for other ways of protecting their investment. One secure way is through a Computer Crime policy. These policies provide coverage for losses resulting directly from a fraudulent entry or change of electronic data or computer program within your institution’s systems.
Expropriation or Political Risks
As the local becomes the global, many businesses are expanding their boundaries to become more profitable. Going into another territory can be tricky but being covered properly for any misfortune, the company can operate with peace of mind and focus on its real goals
- Political Risk insurance can be obtained by any business of any size having operations in any countries where there is a risk of any of the following:
- Political violence, such as revolution, insurrection, civil unrest, terrorism or war;
- Governmental expropriation or confiscation of assets;
- Governmental frustration or repudiation of contracts;
- Wrongful calling of letters of credit or similar on-demand guarantees; and
- Inconvertibility of foreign currency or the inability to repatriate funds.
All of which are available through FFK. In view of the constant changes taking place, it is the responsibility of the broker to be alert to his client’s needs in this regard.
FFK on occasion has designed special covers to suit a particular situation falling outside the scope of those available.
Liability insurance is a part of the general insurance system of risk transference. It is insurance that pays and renders service on behalf of an insured for loss arising out of his responsibility, due to negligence, to others imposed by law or assumed by contract.
Consumers frequently underestimate this class of insurance, greater attention being focused on property damage due to fires, hurricanes and earthquake. As those engaged in production or international trade will well know, however, faulty equipment, poor quality products/services and careless employees can create negligence claims of “huge” proportions.
Whilst sound quality control and rigid safety measures can greatly assist in reducing loss, potential “mistakes” will occur and “accidents” will happen. Both can be extremely costly.
We are frequently exposed to people and circumstances, which eventually force us to meet what we may sometimes regard as unreasonable levels of responsibility and unrealistic levels of penalties as a result of personal injury or property damage to third parties (including consumers and employees). Today, Jamaica is becoming increasingly litigious with higher bodily injury awards being granted than in the past.
At FFK we can advise fully on such matters and ensure adequate protection at a competitive price to meet those legal responsibilities arising from the business operations and its workers.
Type Of Liability
How Does Liability Arise
Liability normally arises from breach in contract. Any Professional man who enters into a contract with a client is expected to provide reasonable care and skill while exercising the service rendered or product sold. If there is failure to exercise that care and skill and it results in a loss or damage to the client, the professional man may be sued for negligence.
An employers’ Liability policy covers the legal liability of an employer in relation to bodily injury or disease sustained by an employee and which arises out of and In the course of the employment.
Employers’ Liability does not indemnify the insured for moral liability but only for the legal liabilities involved.
Legal Liabilities for damages involves the claimants cost and expenses in respect of bodily injuries to or death, disease or illness sustained by any person under a contract of service or apprenticeship with the insured, and caused during the period of insurance arising out of and in the course of his employment.
Products Liability will cover the insured’s legal responsibilities/liabilities for any bodily injury (including death, disease or illness) to a person or loss of or damage to material property caused by the insured’s products or goods.
For further clarification goods can be defined as any food or product sold, supplied, erected, repaired, altered, treated or installed by the insured in the course of the business .
This type of liability is also known as Professional Indemnity, Errors and Omissions or malpractice insurance and issued to wide range of professionals.
All people are human, and the main purpose of this policy is to protect a professional man against his legal liability towards third parties for injury, loss or damage, arising from his own professional negligence or that of his employees.
Public liability insurance is designed to cover businesses in the event that they are sued by a third party who feels that they have suffered a loss as a result of that company’s negligence.
This type of liability insurance covers any awards of damages given to a member of the public because of an injury or death to a member of the public or damage to third parties property caused by you or your business. The policy will cover legal fees, doctor/hospital fees, and any expenses the insured incurs which relates to the liability loss.
It is common to associate the word ‘crime’ with physical violence. The drama of hold-ups and burglaries make good news copy. Yet, the more catastrophic losses occasioned by fraud and embezzlement go virtually unreported. Security and systems of supervision are as vital as adequate insurance cover. Let us advise you on how to protect your assets economically.
Marine & Aviation
Marine Aviation and Transit insurances are concerned with the protection of world trade. If cargo is the lifeblood of trade, then ships, aircraft and vehicles represent the heart, which pumps the cargo from country to country.
Specialist knowledge is absolutely essential in coping with the demands imposed by the complexities of the technological advance in the field of transportation. Moreover, there are special legal implications involved, particularly as concerns third parties.
Through our international network, we can provide a complete service in virtually every country in the world.
We will also arrange insurance protection for your Pleasure Crafts.
Marine insurance will include the insurance of hulls, the cargo they carry, liabilities that may devolve upon ships and ship operators, known as “protection and indemnity” and also the insurance of wharves, ports and harbours, container terminals and even oil platforms and drilling rigs.
This is usually covered under a Marine Insurance policy, whether for domestic or international journeys, by sea, air or land. There are three internationally recognised types of cover, known as ‘Institute Cargo Clauses A, B and C’. These have replaced three old covers with antiquated wordings known as All Risks, With Average (WA) and Free of Particular Average (FPA).
Ships or “Hulls”, like cargo, are insured under marine insurance policies usually based on “Marine Institute Clauses”. In the case of ships, the normal basis of cover is Institute Time Clauses – Hulls. The Institute Clauses are complicated, old-fashioned wordings which, though often difficult to understand by the layman, have been subject to numerous legal precedents and the extent of the liability of insurers in almost all situations has been firmly established.
With Increase in air travel and the potential risks involved in the operation of an aircraft Aviation insurance provides coverage for losses as well as liability for passenger injuries, environmental and third-party damage caused by aircraft accidents.
Transit insurance is a policy that covers business goods or personal belongings while they’re being moved from the place of loading to the stated destination over land by a certain transport mode. This type of insurance covers the packing and unpacking, loading or offloading, transportation and storage of goods during the entire move. It also covers the damage or loss of the goods while in transit due to mishandling, or other forms of damage such as accidents, explosions, impact fires, theft and malicious damage. Transit insurance is useful to people who regularly transport goods over large or small distances, especially the couriers.
FFK is one of the leading and expert insurance brokers in Jamaica. Our goal is to make sure that your company has complete and adequate insurance coverage and these are also comparable to the industry of the business. Contact us today and allow us to work with you in designing and procuring an insurance coverage that works for your business.