Inclusions and Exclusions under Office Package Policy

Inclusions of Office Package

• Protection from Earthquake Damage - The office property damaged by the earthquake will be covered by the insurance policy
• Protection from Fire - Fire accidents will lead to great loss of property and life. The compensation is paid for such incidents by the insurance company
• Terrorism - Some insurance companies will cover the damage or destruction of property or machinery due to the act of terrorism
• Electrical & Mechanical Breakdown - Generally, the electrical and mechanical breakdown is not covered by the general insurance. However, you can negotiate with the insurance company to include the risk by paying an additional premium under the office package policy
• Theft - If the goods are stolen from the insured property, the compensation will be paid by the insurance company after verifying the incident
• Burglary - violent entry into the office premises and the resultant damage to the property will be covered by the insurance policy
• Fraudulent Transactions - If the employee or the representative of the company perform fraudulent transactions which lead to the loss of business, the insurance company will pay the compensation
• Misuse of Official Information - The loss due to misuse of official information or trade secrets by staff will be borne by the insurance company.
• Damage of Glasses - The glass fixtures at the office and various locations of the business unit
• Housekeeping Services - Expenses incurred towards housekeeping services due to the damage of the premises
• Sanitary Items - The sanitary fittings and accessories which are included in the insurance policy
• Damage Towards Publicity Material - Various kinds of publicity material and equipment such as hoardings, neon signs and digital sign boards are covered by the insurance policy
• Flood - The damage to the property and assets due to the entry of flood water
• Lightning - The cost incurred in the installation of safety devices to prevent damage due to lightning will be covered by the insurance policy.
• Accidental Death or Injury of Employees - if there is accidental death or injury to the employee, the insurance company will pay the compensation.
• Loss of Baggage During Official Tour - The loss of baggage of the employee during the official tour will be compensated by the insurance company

Exclusions of office package

• Normal Wear and Tear - If there is damage to the office property due to normal wear and tear, it will not be covered by the insurance policy
• Aging or steady deterioration - There will be steady deterioration of the office furniture, equipment, machinery and various kinds of items. These items are not covered by the insurance policy
• Intentional Damage - If the property owner damages the property intentionally, the insurance will be null and void
• Loss Due to War or War-Like Situation - If there is a loss to the property or items due to war or war-like situation, the insurance coverage is not applicable
• Nuclear or Atomic Radiation - The insurance company is not liable for damages that occur due to nuclear radiation or leakage
• Illegal Activities - The damage occurs on the premises of the business due to the illegal activities will not be covered by the insurance policy
• Loss Due to Pollution - The loss happens to the business property due to air, water and other kinds of pollution is not compensated by the insurance company
• Damage Due to Fire - Even though the sum assured is higher than the damage, the compensation due to fire accidents will be in proportion to the actual damage.
• Loss of Business Revenue - If there is a loss to the property due to fire; flood or another natural calamity the loss will be limited to the property damage only. The loss of revenue due to interruption of business services will not be compensated by the insurance company.
• Loss Due to Supplier’s Fault - If there is a loss to the business due to the fault of the client (manufacturing defect or faulty replacement), it will not be compensated by the insurance company.

The premium of the office package plan

• The premium collected by the insurance company is based on various risk factors covered by the policy.
• The premium rate is applicable for each risk factor. The risk covered by various factors will be combined together to calculate the total premium.
• The total premium is based on the type of equipment, a number of machines, personal accident premium and the number of employees.

Coverage of various risk factors

The insurance company will pay the compensation up to the sum assured or the limit of indemnity mentioned in the insurance policy when the insured event takes place at the office premises.

Building and contents

• Damage Due to Fire -The exclusions includes natural heating or spontaneous combustion. The fermentation, heating and drying process and the burning of property by order of public authority are not covered by the policy.
• Aircraft Damage - The damage or loss due to aircraft or space devices. The damage due to articles dropped from the aircraft
• Riot, Strike and Terrorism - The damage occurred due to riots, strike and terrorism will be covered by the insurance policy. However, the loss to the business operations or process delay will not be covered by the policy.
• Subsidence and Landslide - Sinking of the property which is covered by the insurance policy or rock sliding which causes damage to the property will be covered by the insurance policy. The exclusions are normal cracking or settlement or bedding down of the new building. Coastal erosion and defective design of the building will not be covered by the insurance policy.

Bursting of water pipes or oil pipes

Leakage of automatic sprinkler systems - If there is loss due to repair or renovation of the building; it is not covered by the policy.

• Bushfire - Normal bushfire is covered by the policy. However, forest bushfire is not covered by the insurance policy
• Payment for Professionals - The payment made to professionals such as architects, surveyors and consultant engineers will be borne by the insurance company

Tenant’s liability

The insurance company will indemnify the insured and will pay the legal liability as a tenant but not as the owner of the insured premises. A certain percentage of the sum assured will be paid under this section and it will not exceed 25% of the sum assured in a policy year.

Burglary & robbery coverage

The insurance company will indemnify the insured in the following respects:

Loss or damage to the contents of the insured property during the burglary, robbery or attempted robbery incidents during the policy year will be borne by the insurance company.

The following losses are also covered under this burglary insurance:

Loss of money

• Loss of money present in the safe during the unoccupied condition of the premises
• Robbery from the cashier’s till or counter present in the insured premises during business hours
• The insured should fulfil the necessary formalities stipulated by the insurance company. The incident should be reported to the police and the insurance company immediately (within 24 hours).
• The insured should send detailed information to the insurance company about the loss of quantity and type of instruments.
• If there are valuables which are not mentioned in the insurance proposal form, the insurance company will not pay compensation for those items.

Money insurance

The loss of money in transit by the insured or the employee during the policy period is covered by the insurance policy. However, if the money was lost during the transit by an unauthorized person, the insurance company is not liable for damages.

The incident should be reported to the insurance company and police station immediately after the loss of money (within 24 hours).

Plate Glass

If there is accidental loss or damage to the plate glass at the insured premises, the insurance company will indemnify the insured.

The insurance company will pay compensation up to the ceiling amount mentioned in the insurance policy. The insurance is applicable for repair or restoration of each frame or framework. The liability of the company will be up to the sub-limit mentioned in the insurance policy.

Breakdown of office equipment

The repair/replacement of the office equipment due to unforeseen conditions will be compensated by the insurance company. The replacement cost will be equal to the cost of the new equipment or equivalent equipment (with the same configuration/capacity/volume).

If there is a total loss of the equipment, the restoration will be done up to the sub-limits mentioned in the insurance policy. The insured should pay at least 1% or a fixed sum for each claim as per the terms and conditions of the policy.

If there is loss due to transportation or wilful destruction of the equipment, such incidents are excluded by the insurance company.

Baggage loss

Accidental loss, destruction or damage to the personal baggage will be covered by the insurance policy. The insurance cover is applicable for the insured or the employee of the insured while travelling anywhere in the world for business purposes.

The loss or damage of brittle (or fragile) items will not be covered by the policy. However, if the damage takes place due to an impact or collision while travelling by road, rail, water or air transportation system, it will be covered by the policy.

The loss of valuable items such as gold and jewellery is not covered by the policy unless the policy is extended by including those items in the contract.

Electronic equipment

Loss or damage of electronic equipment due to sudden or unforeseen conditions will be covered by the Office Package Insurance Policy. The insurance coverage is applicable up to the sub-limits mentioned in the policy. The liability of the insurance company will be up to replacement or repair of the electronic equipment. If there is any loss to business due to the data present in the equipment, the insurance company is not liable for damages.

Personal accident

The office package policy will cover non-living things and living things as well. Employees are covered against accidental death, disability (partial or total). The insurance premium payable for the section will be based on the type of employment and the number of employees.

Conclusion!

The unforeseen risks associated with the office premises and infrastructure will be covered by the Office Package Policy. You should assess various risk parameters and should buy the most appropriate policy to cover maximum risk factors. There are various inclusions and exclusions applied by the general insurance company. You can include exclusions also in the insurance policy by paying an additional premium.