Sub-Limits are imposed on IAR/PAR Policies to reduce the insurers liability for certain covers or to give extra extensions that are now very common included in the policy schedule
It is important that these be imposed for those type of perils or covers where it is inappropriate for the full policy limit(s) to apply. Remember that where no sub limit appears then the full sum insured is the limit.
Sub limits are now very common for the following covers:
Ø Machinery Breakdown*
Ø Money Insurance*
Ø Public Liability*
Ø “Special Electrical Short Circuit”
Ø Architects, Surveyors and Consulting Engineers
Ø Capital Addition
Ø Extra Cost of Reinstatement
Ø Removal of Debris
Ø Claim Preparation Costs
Ø Directors/Employees Clothing or Tools of Trade
Ø Fire Extinguishment Costs
Ø Cost of Temporary Protection
Ø Computer Record
Ø All Other Contents
Ø Customers Goods
Ø Additional Increased Cost of Working
Ø Unspecified suppliers and customers
Ø Expediting Costs
Ø And many more
*Machinery Breakdown, Money Insurance and Public Liability Insurance are originally separated insurance / wordings that are now on market demand very often to be included in IAR/PAR Policies.
Others are extra benefits or extensions that are very common to provide under IAR/PAR Policies
Wisely underwriters shall think that they are provide “Extra cover for adequate premium”.
Any questions or comments please feel free to give me a call
IMAM MUSJAB – 08128079130
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