Cash and cash equivalents like cheques and demand drafts represent the lifeline of every business and laboratories are no exception. Often lab employees have to carry cash while on duty / in transit, to and from bank, when it may be knocked off. Treasury notes, postal orders and current postage stamps are also covered.Money insurance covers this risk, under what is called Section I cover. Section II covers risk of loss of cash received during the course of business or locked up in a safe in the lab premises.
Computation of sum insured
The sum insured is worked out by reckoning two factors:
- Amount of money likely to be transited during the year;
- Maximum liability the lab is likely to sustain from one instance of loss.
Risks that can be covered additionally
Additionally, the lab can cover the following risks, optionally:
- Infidelity (disloyalty) on the part of employees
- Disbursement losses.
Points to remember
- The lab should, however, take note of following exclusions:
- Shortage of cash arising from error or omission.
- Shortage attributable to dishonesty on the part of a lab employee or fraud
- Any risk / loss already covered by other policies.
- Other exclusions
Money insurance does not cover loss or damage arising from:
- Flood, cyclone,earthquake and other events attributable to nature
- War and warlike operations
- Civil commotion,riot and strikes
- Terrorist activities
- Shortage arising from use of keys to safe(s) or strong room, unless such keys are obtained by force or threat, while being carried under a contract of airfreight
- Theft from unattended vehicle