At What Amounts Should You Insure Your I-Café?
Now that you know the risks and the insurance package that you need to purchase for your i-café business, the next thing you will have to decide is at what amounts of cover should you insure your investment. As I said earlier, neither should you over-insure nor under-insure your business because if ever you get to file claims against your policy, the adjuster (appraisal company) will definite get the true worth of your investment. Come reckoning point, it will always be to your advantage to insure your i-café business based on its true value.
Let us start with the Premises/Operations Liability Insurance which will indemnify you for bodily injury, including death, and property damage to third parties in connection with your business operations. For this cover, the recommended amount is P50,000/person for Bodily Injury (BI), P100,000/accident for Property Damage (PD) and P100,000 aggregate limit for BI and PD. The premium for this insurance coverage is only P623.50 as quoted by one (1) non-life insurance company I am working with.
Next will be the Fire and Lightning (F/L) Insurance with Broad Water Damage provision. The amount you spent in constructing (if you own the building) or the cost of improvement you made on the space you are renting plus the amount you spent for the PC equipment and accessories, the cost of your local area network (LAN), and the money you spent for the furniture and fixtures (tables and chairs included) and others like air-conditioning units, electric fans, etc. is the figure you must use in purchasing this insurance cover. For a total cover of P0.5M against fire and lightning with broad water damage, the quoted premium amount is P2,534.00 only.
The last standard insurance cover that you should get for your i-café business is the one against Robbery and Burglary (R&B) in which café businesses are at high risks nowadays. The amount of cover that you should get must include all your expenses in buying the PC equipment and accessories which can be hauled by the “bolt-cutter” gang (the popular name for i-café robbers and burglars). A sample amount of premium for an R&B cover of say P300,000.00 is P2,151.07 as quoted by the insurance company I am working with at present.