Property Performance Insurance
Sophisticated property damage and business interruption cover
Well managed medium to large risks with proven positive attitude to loss prevention. Combined Property Damage and Business Interruption sums insured exceeding £50m.
Combined Property Damage and Business Interruption premiums exceeding £50,000. Multinational businesses with operations in one or more overseas locations.
Business income loss payable on the greater of Gross Profits basis of loss and Gross Earnings basis of loss. All Risks Property Damage cover including: Insured’s own clean-up costs
Reduced conditions and warranties (no sprinkler warranty, no security alarm warranty, no stock stillage warranty) Property Performance cover has also been extended in many areas to strengthen clients’ business continuity:
Although a standard cyber exclusion has been common in commercial property, Property Performance not only covers clients’ costs to repair or replace damaged electronic files (including damage by hacking, virus and other unauthorised access), but it also covers the resulting business interruption costs as well.
Property Performance covers equipment breakdown, including electrical and mechanical breakdown and computers.
Property Performance covers the costs of cleaning up pollution from land or water at the insured’s location after a covered loss. This is a first party coverage element from environmental insurance that compliments other environmental insurance products.
Unlike most property wordings that provide restricted theft cover following forcible and violent entry, Property Performance provides full theft coverage. This includes cover where there are no visible signs of entry to the premises
Rebuilding damaged property with certified green materials to certified green standards may cost more than standard repairs, and this is covered by Property Performance. Clients benefit as local authorities may have green guidelines, businesses increasingly want to demonstrate their green credentials from a Corporate Social Responsibility perspective and owners can command higher rentals from green properties.
After a loss, repairs may be completed quickly and the business resumes operations but there is an ongoing loss of business income, as it takes time to recover sales lost to local competition. In this situation a Gross Profit basis of claims settlement, covering loss of business income up to the maximum indemnity period may be beneficial to clients.
After a loss repairs might take longer than the indemnity period. (This can be the case after a local catastrophe creates difficulties sourcing labour and materials, or there may be delays when the premises are not owned and controlled by the insured). In these situations cover on a gross earnings basis up to the point where the property is repaired may be beneficial.