Presentation on theme: "CGU Padlock An innovative insurance solution for the Commercial Property Owner."— Presentation transcript:
1CGU PadlockAn innovative insurance solution for the Commercial Property Owner
2Overview: CGU Padlock A tailored product specifically designed for small, medium and largecommercial property owners($200K up to $200 million asset value)A product with a unique value propositionComprehensive product plus value addedbenefits
3What is CGU Padlock?Padlock is designed to cater for the Commercial Property Owner/Landlord market, which is non-strata title.The product provides an ISR based wording for the property section with Theft, Money, Glass, Liability, Machinery & other sections.Unique covers include Environmental Upgrade cover & Rent Default.
4What value does ‘Padlock’ provide PropertyLoss of rentTheft, Money & Rent DefaultGlassTax AuditOHS Fines & PenaltiesLiabilityMachinery/ Electrical Break down
5Section 1 - Material Damage Main FeaturesISR type wordingAccidental damage (no sub limit)Provision for SI to reflect actual replacement values, via CGU Right CoverEnvironmental Upgrade 10%Home, office contents: $25kCatastrophe coverAdditional Extra Cost of Reinstatement – Even if damage is less than 50%Theft, glass, moneyexcluded & covered underseparate policy sections
6Section 2 – Loss of Income Covers rent & forms basis of Rent Default Cover available.Looking to insure for minimum 12 months – preferably 24 months.Additional BenefitsAccountants fees $5k *Loss of Documents* These additional benefits can be varied
7Section 3 - Theft, Money, Rent Default Section 3 A – TheftCover provided up to full section 1 sum insured – policy schedule to update automaticallyAdditional BenefitsEnvironmental Upgrade 10%Rewriting of Records $50KHome office contents $25kTheft in open air $5kTemporary protection $25kClothing & effects $5k / $10kInjury due to theft $10k / $200 pw
8Section 3 C – Rent Default Section 3 B - MoneyBlanket Coverage of $50k – automatic with Sect 1 cover but limited to $5k at private residence and on premises O/S business hoursSection 3 C – Rent DefaultAvailable to;Property that is professionally managedTenants that have been in business for more than 12 months.Extent of cover – maximum 26 weeks (Sum Insured must be at least 6 months rent)We will pay a contribution to legal expenses (50% up to $3,000)
9Section 4 - Glass Section 5 – Tax Audit Providing cover for glass up to $5K or the amount shown in the scheduleSection 5 – Tax AuditCovering professional fees undertaken in the event of an audit or investigation up to $5k by a federal or state commissioner of taxation.
10Section 6 – OH&S Breaches Covers the legal costs & expenses the insured occurs in defending, appealing a OH&S fine/ penalty.Cover is provided for $100kSection 7 – LiabilityTailored to property owner(s) – Maintaining covers required by a property ownerAdditional Benefits- GPLC (CCC) $100K, Legal Costs & Cover for others- Cross liability & Car parks
11Section 8 – Machinery / Engineering Covering standard plant, security systems & electronic card access systems etc.Blanket cover option based on building SI or can cover specified machinery only.Chillers need to be insured separately as they are excluded from blanket cover.Additional costs associated with repair - $25k or 50% of SI, whichever is the lesserConsulting Engineers’ Fees - $5k.
12What are the Unique Value Added Benefits? Sum Insured Health CheckSum insured Desk Top reviewCGU are partnering with Reed Construction to provide a commercial SI calculatorWe will review the sum insured after binding cover & provide a recommendation to the broker of what we believe the sum insured should be.If current sum insured is correct we will delete average clause, If it is not we will recommend an increase.Right Cover surveyIt is expected that the majority of properties insured will require a survey to be completed, the Right Cover survey will provide a risk assessment plus a sum insured review.
13Sum Insured Review Model A Sum Insured Health Check will be available for ‘qualifying business’ via a Desk TopReview or a Right Cover survey. A solution for higher value properties is also being evaluatedRight CoverValuationSum Insured Desk Top ReviewBuilding Sum Insured ReviewOnlyBuilding, Stock, Plant, BISum Insured ReviewGenerally Building & Fittingsonly ReviewDesktop review of sumsinsured for Property risksUp to $5m in value.Onsite inspection – Survey& sum Insured reviewfor Property & BI risks$1m up to $15m.Onsite inspection & reviewof Property for values$5m to $200m plusInformation supplied bybroker, Customer. Reliant oninformation suppliedSite inspection & Informationsupplied by Customer plusaccess to Floor Plan records,AccountsSite Inspection, floor plan& other records(working on a potentialSolution)ValuationRight CoverDesk Top Review$0$5m$15m$200mMajority of CGU Portfolio
14The product will be promoted AdvertisingComprehensive CoverRent Default CoverEnvironmental Upgrade CoverSum Insured Health CheckThe product will be promotedwith 4 main themes