What Insurance Cover To Get For An I-Café

After knowing why you as an i-café owner must get an insurance cover for your shop, we will now discuss what kind of risks and liabilities must be included in the insurance cover that you will get. The usual advice is never under-insure nor over-insure your i-café. The best insurance cover is one that would pay you for the liabilities or losses that you may incur should any of the risks happen to your business. Under-insurance may cost you less in term of the premium that you will pay to the insurance company but may cost you to lose should the something untoward happen to your business. Over-insurance will cause you to pay more money for the premium but it will not guarantee that you will get paid more than your losses when the risks stated in your insurance policy happen.

What then must be included in the insurance policy of an i-café that can adequately assure you as its owner that you will be adequately covered against the unusual risks involved in the operation of your business? Below are the recommended provisions that must be included in an insurance cover of an i-café:

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 with Broad Water Damage (BWD) - 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.

The above covers are the recommended ones but should there be more risks that you want to be covered because you feel that your i-café can suffer loss from such risks, go on and ask your non-life insurer if they have cover for such risks.