It is a sad fact that many SMEs do struggle to make progress past the first year of trading. Compounded by the bottleneck on borrowing, many SMEs also seem to forget to cover their business with adequate small business insurance in the event of a catastrophe.Two major issues exist: Obtaining Financing and Being Adequately Protected.Many simply do not have the adequate level of small business protection.For example, here is a list of reasons to be...more
Although it stands by itself, the contamination exclusion ties in quite closely with the processing exclusion. The text of the contamination exclusion varies considerably from one ARPI policy to another. Some exclusions define contamination by reference to pollution or change in texture, finish, colour or flavour. Some exclusions simply include contamination amongst a whole variety of perils in one clause such as "... corrosion,...more
For example, a fire may occur in a frozen food packaging plant. As a result of the fire, the packaging of the stock becomes contaminated and has to be replaced. In those circumstances, the damage would be covered by the policy even though contamination may be excluded in that it was itself caused by a non-excluded peril, namely fire and smoke pollution. An example of the second part of the proviso could perhaps be where the concrete floor of the factory has become contaminated over a period of time with inflammable chemicals. Eventually, as a result of the build-up of chemicals, a fire was started. The damage resulting from that fire would be covered under the policy. Two US cases illustrate the circumstances in which the contamination exclusion can be invoked. In the case of American Casualty Company of Reading, Pennsylvania^. A.L. Myrick, 304 F2d 179 (1962), quantities of chickens, eggs and other products were stored from time to time in a refrigerated storage room. The storage room was cooled by means of an ammonia coolant which flowed under pressure through a system of overhead coils. A Vi pipe connected to one end of the coil system supplied the ammonia coolant...more
All of the goods stored in the room became unfit for human consumption as a result of contamination from the ammonia. The ARPI policy excluded contamination unless caused by or resulting from loss of or to the property covered by explosion. It was argued that the contamination was caused by an explosion and the court adopted an...more
The assured argued that "contaminate" meant introducing foreign substance thus effectively creating a different substance. It conceded, however, that a product is also referred to as contaminated when the foreign substance merely injures its usefulness without affecting the original physical characteristics. It was argued that...more
Some, but by no means all, ARPI policies contain a clause excluding spontaneous combustion, namely a fire brought about by the conditions produced within the substance itself. The key element to spontaneous combustion is the creation of a fire without obvious external factors. Therefore, there have been doubts as to whether or not an insurance policy would cover such a loss, even if it was not specifically excluded. In other words, is spontaneous combustion a type of inherent vice and not created by the interaction of external forces? It is suggested that spontaneous combustion can only take place if certain conditions occur, such as an increase in heat. Therefore, to that extent, spontaneous combustion is not inevitable and relies upon certain favourable conditions existing. In the case of Duncanson v. Continental Insurance Co., 69 DLR 4th 198; 20 ACWS (3d) 564, the Nova Scotia Court of Appeal was required to decide whether the expression in the policy "including self-ignition" enlarged the meaning of the word "fire" so as to include spontaneous combustion even when there was no fire. When heat was spontaneously generated by the cargo the Court of Appeal found that...more
There is a degree of overlap again between riot, civil commotion and terrorism, but terrorism is considered separately in that, again, it has a somewhat different history of coverage under All Risk Property Insurance (ARPI) policies....more
A dramatic change in the market took place following the massive explosion that had occurred in St Mary Axe in 1992 resulting in damage to the Commercial Union building and other buildings in the City. At the end of 1992 the reinsurance...more
The Chambers Concise Twentieth Century Dictionary defines terrorism as "an organised system of intimidation especially for political ends". Lastly, the Concise Oxford Dictionary describes a terrorist as "a person who uses or favours...more
Without such public declarations, the identity of the target may be an indication of whether the motive is specific or whether it has political motivation—is the intention to influence the individual or the government? If, for...more
When purchasing commercial vehicle insurance there are many different options to choose from, do you need breakdown insurance, towing insurance or windscreen insurance? These different commercial van insurance extras will affect how much you pay for...more
With so many insurance companies in the United States today, choosing the one that suits best your needs can be a puzzling decision to make. So once you have decided to buy an insurance policy, how do know if the insurance provider is the right one....more