Owners of commercial premises and those under construction are to insure them against fire and other risks as mandated by the insurance law (Act 724 of 2006), the National Insurance Commission (NIC) has warned.

Meanwhile, the NIC has deferred its August 2011 deadline to start enforcing the law so as to educate the public more. No new date for enforcement has been given.

At a workshop in Ho on “Compulsory Insurance of Commercial Buildings”, Mr George Appiah Addae, General Manager, Operations, of Ghana Life Insurance Company (GLICO), said such premises included large commercial premises and buildings, radio stations, barbering shops, hair salons, chop-bars and restaurants, guest houses and any place where services are sold to the public.

Mr. Addae explained that although the law exempted churches from such mandatory insurance of their premises, they must do so where the premises have bookshops, schools and any other services patronized by the public.

He said where the owner of the commercial premise had transferred the use of the premises to somebody else, that person must obtain the compulsory insurance. Mr. Addae, however, said the Ghana National Fire Service for instance could not be prevented from enforcing fire safety requirements on such premises.

He advised owners of commercial premises, who insured their premises before the coming into effect of the compulsory regime in 2006, to have them “endorsed” by their insurers.

The Insurance Certificate covering premises under construction has a blue background while that for premises where commercial activities are taking place has a red background.

Mr. Addae said third party liability limits under the compulsory regime amounted to GH¢10,000 in cases of property damage, injury and or death. He said it was however advisable for the insurance holder to have a higher sum assured to cushion against bigger liabilities such as having to be sued.