An aviation insurance consultant Mr. Fidelis Ako has called on the insuring public to buy commercial property insurance on their property so as to reap the many benefits of such, as well as securing themselves against the danger of uninsured property. The consultant who is also the managing director of Akofad Air Services stated that no matter the type of property that one has; restaurant, garage or hotel, it is crucial that insurance needs must be met before members of the public are invited to transact business in the facilities.
He explained that there are numerous reasons why the insuring public must buy commercial property insurance. One of the reasons, he said, is that properties are subjected to the same hazards that human beings are exposed to. “Properties are exposed to dangerous incidence such as robbery, breakdown of machinery and other man made or natural disasters and there is no limit to what may occur, so it is important to ensure that commercial property insurance is in place to protect you when the need arises”. If a member of the public is hurt while on the premises, you will need sufficient insurance cover to enable them to make a claim. Additionally, staff must be covered for accidents while at work. Accidental fire damage and/or floods are also aspects that need to be considered, especially as many people do not realize the full scale of what commercial property insurance can cover. Furthermore, if a building is lost due to damage, insurance will cover the value of the building and contents; this is a lifesaver in some situations for the business owner.
While thinking of buying property insurance, he explained that there are obviously, different types of business establishment which will in their different settings incur varying prices for commercial property insurance. For instance, high risk buildings, such as fast food restaurants and fish and chip shops will tend to cost more to insure, as there is greater risk of fire and accidents. Offices are seen as lower risk therefore they would cost less to cover. Aspects that insurance companies will need to take into account also are whether the property to be insured is at increased risk of subsidence and/or flooding; if so, this will raise the cost of the insurance.
There is no fixed premium among insurance companies in determining policy framework of commercial property insurance. However many companies offer a wide range of packages and prices, so looking around for the best deal may sometimes be confusing. Additionally, some companies word their policies and documents differently, which can add to the often perplexing task of buying insurance. In this case, it may be worth looking into employing the services of an insurance broker, who will be able to understand both your need and the various options presented by the insurance company itself. An insurance broker will also be able to negotiate for the best deal that is tailored to your individual needs, which is often very helpful and saves time.
Whatever your reasons for needing commercial property insurance may be, it will always be an essential aspect of running a business, and one that cannot be delayed or put aside. Not taking the right insurance could be very devastating especially when the uninsured problem occurs. People have been caught unaware without sufficient insurance, and this is usually a devastating situation to them. To those who consider insurance as a luxury and who are often discouraged by the high cost of procuring one, there is need for them to have a rethink. One important point to note is that it is always important to give the most accurate information possible to either the insurance company or a broker, as incorrect facts may render the insurance invalid. This singular fact has been responsible for the bad image of insurance in Nigeria. This is especially so because incorrect information at the time of cover may lead to a denial in claims payment when the need arises.
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