Insuring An I-Café Against Business Risks
In a series of articles here at Owning an I-Café, I have discussed thoroughly everything about insuring an i-café against the perils or risks that your investment faces in this kind of business especially that of robbery and burglary. I have likewise presented two (2) cases of actual robberies by the bolt-cutter gang; the i-café in the first case is uninsured while the second had successfully made a claim against an insurance cover whose premium was not yet paid at the time of the robbery incident.
Now, I have to disclose that I am a free-lance insurance agent of FLT Prime Insurance Corporation, one of the country’s top non-life insurance company. As a former café owner who knows the actual risks that must be covered in the business, I had worked out an insurance package with FLT Prime which they allowed me to offer to an i-café in any part of the country. I, therefore, request anyone who wants to have their investment insured to fill-up the application form here so I can quote you the premium on the coverage you want.
As a guide, I wish to quote part of an article about insurance to briefly explain what the perils to be covered mean:
A) Premises/Operations Liability – indemnifies you for the bodily injury, including death, and property damage to third parties in connection with your business operation. Does this mean that if your customers quarreled and some get hurt or killed, your insurer will pay for the hospital and/or funeral bills? The answer is NO. This cover is for unprovoked incidents only like when your customer got hurt when hit by a wayward falling CPU.
B) Fire and Lightning (F/L) Insurance – Pays for loss or damage of business or leasehold improvements, equipment, furniture, fixtures and other business contents usual to an i-café caused by fire or lightning. Also pays loss or damage due to Broad Water Damage (BWD) as in natural flooding and water from a fireman’s hose when a nearby establishment is burning.
C) Loss of Business Appliance/Equipment and Stocks – Pays for the loss of computer units and accessories including stocks arising from Robbery and Burglary, subject to a deductible of ten (10%) of each loss or a minimum of PhP10,000.00 whichever is higher.
Next will be a guide on how much you insure your i-café investment and I will quote again a part of an article I made on the subject:
- 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 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.
With these, I wish to encourage all i-café owners to insure their investment with FLT Insurance Corporation so you can sleep soundly at night without worrying about the bolt-cutter gang hauling away your investment.