This is the main material damage cover (see the next section for Loss of Profits) required by businesses, protecting the buildings and contents against a variety of perils.
Perils To Be Covered
While there is the understandable perception that the main threats to the assets of any business doing business in The Bahamas are fire and hurricane, there are many other eventualities which can adversely affect a business. A list follows of the main perils usually covered under a
typical Fire & Perils Policy:
| Fire | Lightning | Explosion | Hurricane |
| Cyclone | Tornado | Windstorm | Tidal Wave |
| Riot | Strike | Malicious Damage | Thunderbolt |
| Aircraft | Impact | Smoke | Hail |
| Earthquake | Volcanic Eruption | Flood | Bursting or Overflowing of Water Tanks, Apparatus or Pipes |
Deductibles
The standard deductibles applying to a Fire & Perils Policy are as follows:
| Peril | Deductible |
| (a) Fire, Lightning or Explosion | Nil |
| (b) Hurricane, Cyclone, Tornado, Windstorm, Tidal Wave, Earthquake, Volcanic Eruption and Flood following these Perils | 2% of the sum insured per item, subject to a minimum of $2,500 per location |
| (c) All other Insured Perils | $250 |
| (d) Docks, Canal Walls, Seawalls | As per (a), (b) and (c) above, but in respect of the Perils under (b), subject to a minimum of $1,000 |
| (e) Satellite Equipment | $250 |
| (f) TV Antennae | $50 |
Premiums
The amount of the premium is based on the sums insured, to which are applied a rate per cent. This rate depends on the location, construction and occupation of the business premises.
Other Features
Professional Fees, Debris Removal and Public Authorities – included in the standard cover.
Reinstatement Memorandum – included in the standard cover. This effectively gives “new for old” cover provided the sum insured is adequate, although it does not apply to stock or employees’ personal effects.
Average Clause (also known as Coinsurance Clause) – allows you to be up to 20% underinsured without penalty.
Stock Declaration Conditions – if in a business subject to seasonal fluctuations, ensures you only pay premium based on the average stock at risk throughout the year.
It can be seen that commercial general insurance is a complicated matter, and is best handled by a professionally-qualified insurance broker or agent, who will also be there for you in the event of a claim. For further information, please contact one of the insurance companies listed in our Bahamas Directory.
Waiver
Nothing contained in this article should be construed as altering, amending or adding to any policy of insurance, cover note or binder. For full details of the policy cover, exclusions, restrictions etc., reference should be made to the policy document itself, a specimen of which will be supplied on request. Neither the author of this article nor his employers nor principals accept any responsibility for the accuracy or otherwise of anything contained therein.