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Accidental Damage Coverage - A Case for UK Commercial Property Owners

Accidental damage insurance is commonly associated with homeowners. It protects from incurring huge bills for repairs or replacements in the case they or a visitor accidentally damages permanent fixtures, breaks a window, or spills red wine on a white sofa.

However, accidental damage coverage is not limited to UK homeowners and the policies that cover their needs. Accidental damage coverage can be added to any other type of property insurance, whether business, residential, agricultural, or commercial.

Landlords and business owners should include this add-on insurance in their policies. Today, we’ll be discussing what these policies cover and how commercial insurance can be incomplete without accidental damage coverage.

What does it cover?

Accidental damage insurance is often included in other insurance policies such as landlord buildings insurance, business insurance, or commercial insurance. However, there might be instances where property owners may have to include it separately for an added premium.

As mentioned before, accidental damage coverage can reimburse the costs required to repair damages caused by a one-off accident. For landlord contents insurance, accidental damage insurance covers costs for replacing any contents such as sofas and kitchen appliances if they are damaged accidentally by the landlord, tenant, or a visitor.

What it doesn’t cover?

Accidental damage insurance does not cover damages caused by usual wear and tear. Also, damage to the property caused by domestic animals or bad workmanship will not be covered in accidental damage coverage. Deliberate damage, which is determined by loss adjusters, will not be covered as well.

Depending on your policy and insurer, high-risk contents such as electronics and gadgets such as laptops will not be covered. You may have to include other add-ons to get coverage for high-risk items.

Running a business or renting out your property to tenants without having proper coverage can lead to major expenses that policyholders have to then pay for out of pocket. For business owners, it means a serious reduction in cash resources.

But that’s not all.

Not having accidental coverage can even push some business owners to the point of bankruptcy.

For example, let’s consider an employee accidentally spills water on an electrical outlet, which then catches fire or short circuits. This makes the property vulnerable to more extensive damage that you have to pay for without a commercial insurance policy that covers accidental damage insurance.

Figuring out the details of policyholder’s accidental damage coverage needs requires the expertise of a trained agent. The general insurance industry in the UK can be complicated, which often confuses policyholders.

Having a team that anticipates policyholders’ problems, provides solutions and guides them to ensure they have a comprehensive portfolio of insurance is paramount and IAUK can help you build a team of insurance professionals.

Please give us a call and we can discuss your recruitment needs and plans.  

 

Note: This blog talks about insurance policies in general terms.  Please note all companies offer varying policies containing different levels of cover. The inclusive/non-inclusive elements of the policies discussed in this article talk about what is typical in the industry but are not exhaustive or true of all policies.

Writen by: Andrew Cowling on 2021-02-17

Tagged under: Insurance.


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