In Today’s #FridayRead, highlights Compulsory Indemnity Insurance for commercial buildings under the Insurance Act 2021 (the “Act”)
The Act requires persons who construct and/or own commercial buildings to insure such buildings with a licensed insurer. The compulsory insurance for commercial buildings is classified into two main types: commercial buildings under construction and completed commercial buildings. Below is the scope of insurance coverage for each type:
1. Commercial building under construction (“CBUC”)
The required scope of the insurance coverage for CBUC is as follows:
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- Loss or damage caused to a person where the claim arises from negligence, breach of duty by the owner, the building contractors or their agents.
- The legal and other costs connected with defending the claim listed above; and
- The cost of investigating and settling such claims.
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2. Completed commercial building (“CCB”)
The required scope of insurance cover for CCB is as follows:
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- Against the hazard of collapse, earthquake, storm and flood; and
- Against the liability of the owner or occupier for loss or damage caused to any person for using the premises.
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It is worthy to note that commercial buildings include office spaces, Banks, Shopping mall, Factories, Hospital, and any other building use for commercial activities.