In the world of business insurance, we love to shorten phrases into mnemonics. The problem is, that we don’t appreciate how confusing this can be for people that don’t deal with policies day in and day out.
Take for example, unoccupied building insurance. Many customers, who call us to discuss and get a quote, feel that an empty building represents a much better risk than a building that is occupied. Partly this is true, there are no processes or production going on and there is nothing in the building to steal (so the fabric of the building is not damaged during a theft).
But, from an insurers point of view, the opposite can be the case. They perceive an empty building to be an Aladdin’s cave for criminals and kids wanting to play in. Smashed windows, burst water pipes, theft of non-ferrous metals (copper pipe and lead roofing) are all claims that occur for empty buildings.
You can’t blame the insurers though, they have building up their statistics over dozens and dozens of years and the result is that they know where the claims occur, and obviously do not want to pay out on them.
So, going back to the mnemonics, one you may hear is FLEA cover. What this is, is a restricted type of cover that insurers will usually only offer for empty buildings. Normally, you would get full perils (types of loss) cover including theft, malicious damage, storm, glass etc. However, FLEA restricts the cover to fire, lightning, aircraft and explosion. Alternatively, you may get FLEEA cover, which includes earthquake.
In addition, most insurers will give property owners liability. Certain insurers will give wider cover, including theft and storm. The best thing to do is to speak to a business insurance broker as they have knowledge of, and access to a wide range of insurers.