Insure Your Peace of Mind

As you may be aware, construction expenses have risen significantly over the past two years due to increases in the prices of construction materials. According to data from the Cyprus Statistical Service, there has been a 33% surge since November 2020, pushing construction costs to exceed €1500 per square meter.

For instance:

For a house covering an area of 200 sq.m., the insured value should be at least: 200 multiplied by €1500, totaling €300,000.

For an apartment spanning 100 sq.m., the insured value should be at least: 100 multiplied by €1500, totaling €150,000.

Given that insurance coverage and compensation for your home in case of damage are based on the Reinstatement Value—meaning, the cost of rebuilding as if it were new—you understand how crucial it is to adjust your insurance cover according to current circumstances. This is essential to avoid the risk of being under-insured. To illustrate, consider the following scenario:

If your house is insured for €200,000, but the reinstatement value at today's costs is €300,000, then in the event of total loss, the compensation amount of €200,000 would fall short of fully restoring your property. Additionally, in cases of partial damage, where, for instance, the cost amounts to €75,000, the insurance policy's standard clause of "average" would apply. This means you'd only receive compensation proportional to the insured value compared to the reinstatement value, resulting in €50,000 rather than the full €75,000.

Hence, we strongly advise you to reassess the insured value of your property based on current realities. After all, protecting your hard-earned, possibly most valuable asset is paramount. Please feel free to reach out info@aplassure.com for any clarification or assistance you may require regarding the above.

We offer a range of business insurance options including :

1. Motor Insurance

2. Property Insurance

3. Group Medical Insurance

4. Group Personal Accident Insurance

5. Employers Liability Insurance

6. Public Liability Insurance

7. Products Liability Insurance

8. Professional Indemnity Insurance

9. Contractors All Risk Insurance

10. Marine Cargo Insurance

11. Goods In Transit Insurance

12. Money Insurance

13. Travel Insurance

14. Cyber Risk Insurance

15. Directors and Officers Liability Insurance

16. Fidelity Guarantee Insurance

Overinsurance occurs when a policyholder insures their home for more than the required cost needed to rebuild it. This results in a double financial loss. Firstly, insurers are only obligated to pay a maximum claim equal to the rebuild cost of the property. In essence, any excess coverage would not yield any additional benefits and would be wasteful expenditure.

On the other hand, underinsurance is the converse situation. This arises when the insured sum in a Home Insurance policy is lower than the property's rebuild cost. While underinsured policies typically have lower premiums, they expose policyholders to significant financial risk. This risk is compounded by the application of the average clause in the event of a claim. The average clause reduces the claim amount by a percentage equivalent to the difference between the rebuild cost and the insured sum.

Consider this example: Mr. X needs to claim €20,000 for damages to his home. He insured his house for €80,000, only to discover later that the actual rebuild cost was €100,000. Consequently, he would receive only 80% of the claim amount (€16,000), not the full €20,000.

Cyber risk insurance, also referred to as cyber liability insurance or cybersecurity insurance, is crafted to safeguard businesses against financial setbacks stemming from various cyber threats and vulnerabilities, encompassing cybercrime, data breaches, and system disruptions. 

Given the surge in electronic transactions in recent times, cyber risk looms larger than ever as hackers refine their tactics. Consequently, cyber risk insurance emerges as an essential shield for virtually every business worldwide. 

Who Can Benefit:

• Virtually all businesses globally face cyber exposures, whether they conduct operations online, engage in wire transfers, or handle sensitive data.
• Even small businesses are vulnerable, with over 60% of cyber attacks targeting small and mid-sized enterprises.
• Any sizable organization, such as a college or university, is also at risk.

Coverage Details

Cyber risk insurance chiefly shields businesses against business interruptions and financial setbacks triggered by cyber incidents, cybercrime, and privacy breaches.

Moreover, a cyber insurance policy may grant access to technical expertise, including IT security specialists, forensic investigators, lawyers, and crisis communication professionals, facilitating swift recovery and resolution.

Most cyber insurance policies encompass a range of first and third-party protections. 

Key Coverage Areas Include:

• Incident Response: Typically covering all expenses related to addressing a cyber incident, such as specialist support and legal counsel regarding ransom demands.
• Business Interruption: Encompasses costs for data and application repair, restoration, or recreation following cyber-related system damage, along with compensating for lost profits due to operational interruptions from cyber attacks.
• Cyber Extortion Coverage: Addresses situations where hackers seize control of data or applications and demand ransom, covering ransom payments and consultant fees.
• Liability Coverage: Helps companies defend against or settle lawsuits from victims of cyber attacks seeking compensation, mitigating financial liabilities.

Around one in four businesses have faced some form of cyber-attack, according to the Cyprus Information Technology Enterprises Association (CITEA). 

In Cyprus, Employers' Liability Insurance is a legal obligation. This mandates that every employer in Cyprus must have insurance to cover legal and compensation expenses stemming from employee claims. Failure to comply results in legal prosecution under Cyprus Law, potentially leading to imprisonment (up to 12 months) or fines (up to €‎1,500 Euro). This insurance shields companies from expenses related to workplace illnesses, injuries, accidents, and fatalities, but does not extend to claims of discrimination, wrongful termination, or sexual harassment.

Anyone who employs a person for more than 8 hours a week is obliged to have such insurance. If you're self-employed, you don't require this insurance for yourself. However, it's advisable to have Personal Accident insurance in place. If you have employees, you'll still need Employer's Liability insurance for them. Moreover, if you are the owner/director of a company you need to include yourself under the Employers’ Liability policy, provided you are not the only employee.

Employers’ Liability provides coverage for the legal responsibility as an employer to compensate its employees for death or bodily injury resulting from an accident or occupational disease during their employment, as defined by applicable regulations.

The insurance coverage offers minimum indemnity limits as mandated by law:

€160,000 for each employee

€3,415,000 for each event or series of events

€5,125,000 for each insurance period

The premium is determined by the estimated annual gross earnings and the number of employees, classified by job description/duties. Policyholders are required to provide the actual annual gross earnings and employee numbers per category within 30 days before the expiry date. Using this actual data, the insurance company will adjust the premium accordingly. If the initial estimated premium was lower, any shortfall will be charged to the policyholder. Conversely, if the estimated premium was higher, the insurance company will refund the excess amount, ensuring it meets the minimum premium requirement.

Many insurance companies provide optional coverage in addition to the Employers’ Liability Insurance such as Public Liability Insurance and Products Liability Insurance.

Contractors All Risks (CAR) insurance offers comprehensive protection against loss or damage relating to construction projects and third-party claims for property damage or bodily injury arising from insured contracts. It is tailored for:

• Building contractors
• Land development firms
• Owners of projects under construction

All involved parties should procure this insurance to prevent any oversights or deficiencies in coverage. The insured parties should include not only the primary contractor and their subcontractors, but also the project owners and their consultants and supervisors.

This policy provides All Risks protection, covering sudden, unforeseen, accidental loss or damage to construction works, except for exclusions. It covers:

• Completed works not yet handed over to the Principal
• Existing buildings and other property
• On-site or off-site project materials
• Temporary structures
• Contractors’ and hired-in plant and equipment
• Property in transit to and from the site

It also includes cover for the insured’s legal liability for third-party bodily injury, illness, or property damage. CAR coverage can extend to manufacturers, suppliers, contractors, and subcontractors.

Additionally, the policy can be expanded to include:

•  Additional custom duty
• Air freight
• Damage to surrounding property
• Damage to underground services
• Debris clearance expenses
• Loss or damage during the maintenance period

The insurance coverage begins either when work commences or upon the arrival of insured items at the construction site. It concludes when sections of the insured contract works are accepted or put into operation, but always before the expiration date specified in the policy schedule. If the project cannot be finished within the contract duration, the insurance company must be informed, and an extension of the insurance period must be requested.

Following the completion of the works and the owner's takeover, coverage is extended to include property damages that may occur during maintenance visits to the project.