Q: I am a software engineer and usually travel around GCC countries. I usually carry my Laptop, I-mate mobile and some costly suits along with my glasses and watch. I know that there is a risk factor in this but I have never insured these items. Is it possible to insure all these items, and what will be the cost? A: The items mentioned by you can be covered under standard personal possession insurance or personal property insurance. However, most of the insurance companies may not be willing to provide this cover to all. They provide this cover only to their valuable customers or reliable existing customers. I would suggest you to contact your accounts/insurance department and ask it about the possibility of insuring the personal items of all engineers under one policy and negotiate reasonably with the insurance company. This will help you in getting the right coverage at right price. Moreover, the insurance company can justify the offer of this coverage. As far as cost is concerned for GCC cover, you may have a rate of 2% on the total value of items insured as an individual and as a group you may have a rate of anywhere between 1 to 1.5%. Some companies may insist on the invoice of some of your valuables before insuring them. Q: We are in the business of chain fencing. Recently we got a contract to fence an open land at a remote location. Our principal is asking us to produce a public liability policy in respect of this fencing and they had put it as a part of contract. This is the first time someone is insisting on this type of coverage. There is no property in and around the plot and we have never taken any such type of policy during the last 15 years of operation. Is it necessary for us to have such policy? A: Public Liability policy is taken to cover the loss of third party property and or personal injury due to the business activity. It may be premises-based or may cover a wider geographical location. Since your work is totally non-hazardous and restricted to a specific location and specific period, the cost of insurance should be less than SR1,000. The PL policy is a contract requirement hence it cannot be avoided. However, depending upon your relationship with your insurer you may even get a better rate. If more of your clients are insisting on PL policies then you have an option to take an annual coverage for all your work. * Shujaath Ahmed Khan, an M.B.A., General Manager, Creative Associates is also a consultant and an expert in Insurance, Investments and Real Estate. He can be contacted at [email protected], website-www.creativeassociates.blogspot.com __
