Neon Sign Insurance is designed to cover any loss or damage caused to a business's electrical signboards put up on its premises.
A neon signboard is a promotional object that can contain anything from company deals, advertising messages, and designs to images. Advertisement is essential for business growth. And signboards are excellent advertising tools, allowing a shop, firm, or agency to display its corporate identity and attract a greater number of customers to the storefront. That’s why nearly every successful corporation in the present climate invests in hoardings and billboards.
These boards are located in public areas to attract diverse audiences. But this location also makes them susceptible to damage due by riots, malicious acts, theft, fire, and other unexpected events. Because of the high costs involved in purchasing and installing signboards, any damage to them can lead to substantial losses for the business. So, to mitigate this risk, businesses purchase a special type of Property Insurance policy called Neon Signboard Insurance.
Neon Sign Insurance specifically covers signboards that have an electrical connection within them. This policy indemnifies the business against :
- Any accidental physical loss, destruction, or damage to the insured neon sign or its part(s)
- Any third party liability that may arise on account of bodily injury or property damage caused by the occurrence of covered perils.
Additionally, the claimant’s legal costs are also covered in the event of third party liability. But keep in mind that this particular coverage is only offered by some insurers.
Neon Signboard Insurance covers loss or damage to neon signs, glow signs, or hoarding signs when caused by the following events :
- Accidental external means
- Fire, lightning, external explosion
- Theft of whole sign/ hoarding
- Riot, strike, malicious damage
- Natural occurrences (Act of God perils) including earthquake (fire and/or shock), subsidence and landslide damage (including rockslide) , flood, inundation, storm, tempest, typhoon, hurricane, tornado and cyclone
Note : Riots, strikes, malicious damage and Act of God perils specified above are generally excluded from most Neon Sign policies and need to be explicitly specified in the policy for them to be covered.
The insurance company will also cover some additional expenses in the event of an admissible claim. These are :
- Boarding up or temporary glazing pending replacement of the Neon Sign
- Replacing alarm, foil, lettering, painting, embossing, silvering or other ornamental work on glass following damage to the Neon Sign
- Installation costs
- Removal of debris subject to maximum of 1% of the claim amount
Neon sign Insurance comes with a host of exclusions. It will not cover the following losses and events :
- Breakage of a signboard not completely secured or fixed
- Loss or damage during repair, cleaning, removal or erection, wear and tear, or depreciation of the signboard
- Frames or framework of any type unless specified and agreed to in the policy schedule
- Over-running, overheating or strain
- Damage to tubes unless the tube glass is fractured
- Breakage of lettering unless it is accompanied by the loss, destruction or damage to the signage
- Disfiguration, scratching, cracking or chipping of the signboard, unless part of the fracture extends through the entire thickness of the signage
- Mechanical or electrical derangement or breakdown on the premises
- The cost of embossing, silvering, lettering, bending or ornamental work of any kind, unless specifically agreed to
- Fusing or burning out of any bulbs or tubes due to short circuiting, or arcing
- Damage caused by aircraft or other aerial devices traveling at sonic or supersonic speeds
- War and allied perils
- Ionizing radiation and nuclear perils
- Contractual liability of the insured
- Consequential loss of any kind
- Death or injury suffered by an employee of the insured in the course of their employment
- Wilful act or wilful negligence of the insured or their representative
Furthermore, any loss or damage to neon signboards due to an act of Terrorism is not covered, unless a Terrorism cover is specifically added to the policy.
Neon Sign Insurance is an affordable policy providing extensive coverage for electrical signboards that are usually very expensive to put up. Due to the relatively small size of this policy, it is often sold in conjunction with a Fire and Allied Perils Insurance Policy.
Did you know some insurers offer combined Plate Glass and Neon Signboard Insurance? Learn more: What doesPlate Glass Insurance cover?