INSURANCE IN THE BVI

By Simon Owen, Managing Director, Hyperion Risk Solutions Limited

Insurance covers against contingent loss, thus coverage is dependent on the class(es) of insurance purchased by an individual or company. It is important to know the different classes of insurance, and the types of coverage they provide, in order to determine which classes you require for your best protection. You can insure against pretty much anything here in the BVI:

• Automobile insurance is probably the most common form of insurance and may cover both legal liability claims against the driver and loss of or damage to the insured's vehicle itself. In the BVI, an auto insurance policy is required to legally operate a motor vehicle on public roads. 
• Aviation insurance insures against hull, spares, deductibles, hull wear and liability risks. 
• Boiler insurance (also known as “boiler and machinery insurance” or “equipment breakdown insurance”) insures against accidental physical damage to equipment or machinery. 
• Builder's risk insurance insures against the risk of physical loss or damage to property during construction. Builder's risk insurance is typically written on an "all risk" basis, covering damage due to any cause (including the negligence of the insured) not otherwise expressly excluded.
• Contractor’s all risk insurance covers liability in respect to a contractor carrying out its work i.e. construction.
• Directors and officers liability insurance protects an organisation (usually a corporation) from costs associated with litigation resulting from mistakes made by directors and officers for which they are liable. In the industry, it is usually called "D&O" for short.
• Earthquake insurance is a form of property insurance that pays the policyholder in the event of an earthquake that causes damage to the property. Some ordinary homeowners’ property insurance policies do not cover earthquake damage. 
• Environmental liability insurance protects the insured from bodily injury, property damage and cleanup costs as a result of the dispersal, release or escape of pollutants. 
• A fidelity bond is a form of casualty insurance that covers policyholders for losses that they incur as a result of fraudulent acts by specified individuals. It usually insures a business for losses caused by the dishonest acts of its employees. 
• Flood insurance protects against property loss due to flooding. Many insurers do not provide flood insurance. 
• Health insurance will cover the cost of medical treatments as allowed for under the schedule of benefits and policy terms.
• Life insurance provides a monetary benefit to a descendant’s family or other designated beneficiary, and may specifically provide for income to an insured person's family, burial, funeral and other final expenses. 
• Marine insurance and marine cargo insurance cover the loss or damage of ships at sea or on inland waterways, and of the cargo that may be on them. 
• Professional liability insurance (also called “professional indemnity insurance”), protects insured professionals such as architectural corporations and medical practices against potential negligence claims made by their patients/clients.
• Property insurance provides protection against risks to property, such as fire, theft or weather damage. For businesses, this often includes business interruption insurance, to cover the financial cost to the company as a result of the property damage.
• Public liability insurance covers a business against claims should its operations injure a member of the public or damage their property in some way. 
• Surety bond insurance is a three party insurance guaranteeing the performance of the principal. 
• Terrorism insurance provides protection against any loss or damage caused by terrorist activities. 
• Vandalism and malicious mischief insurance protects against perils in relation to a property/properties (real or personal).
• Windstorm insurance covers the damage that can be caused by hurricanes and tropical cyclones.
  
  

Who is licensed to sell insurance in the BVI?

Under the Insurance Act (2008), all domestic insurance must be bought from a licenced (or exempted) insurance company. Similarly, all the agents and brokers who sell the insurance must be licensed by the Financial Services Commission. At present, we believe there are a number of unlicenced insurers, agents and brokers selling insurance products to BVI residents and businesses. BE WARNED! If you buy from these, you are not protected in the event of anything going wrong, such as an unjust denial of a valid claim.