Cayman Islands insurance providers and the law

A guide to living and working in the Cayman Islands

Jul 4, 2008

Cayman Insurance

Insurance

Cayman has a wealth of very good insurance companies, which can provide cover for any of the following needs: house, car, life, health, property contents and more.

Health Insurance

Health insurance is required by law. Under the law, employers must obtain health insurance for their employees and the cost of payment is usually split 50/50. Many insurance companies in Cayman offer global coverage. All self-employed persons must have their own health insurance. All health insurance rates depend on your age and if you have any pre-existing conditions. Individuals on a company’s group plan will probably pay less than quoted. The average cost of health insurance at the time of going to press was as follows:

The Standard/Basic Plan

(does not include dental, vision, prescriptions and out-patient doctor’s visits)

Individual CI$108–135 per month

Two-party CI$216 per month

Family CI$325 per month

NOTE: There is a category (and rate) for the single family. Ask whether this applies to you.

Premier Plan

(can include dental, vision, prescriptions and out-patient doctor’s visits)

Individual CI$300–325 per month

Two-party CI$540–560 per month

Family CI$900–960 per month

If your company has a group plan then the premiums (for the standard and the premier plan) will be less per month. For example, a family plan under a group policy costs in the region of CI$675 per month. (See the Health chapter for insurance providers)

House Insurance

The average cost of insurance is 1.8% of the value of the property; this includes liability and building insurance. Properties on the water can attract insurance rates of more than 2.2%. If the property is part of a strata corporation (condominium), the building must be insured in the name of the Strata Corporation. Each owner then pays a portion, usually based on square footage. This is often included in the monthly strata fees. Contents insurance is a separate matter.

Contents Insurance

Budget on about CI$500 per $25,000 of coverage. If you are renting a property, insuring your personal effects is your own responsibility. Your landlord may have insurance to cover the contents provided in your unit but anything that belongs to you needs to be covered in your own policy. The risk of theft in Cayman is relatively low compared to many other countries. However, due to the chance of flooding and hurricane damage, contents insurance is recommended.

Insurance companies suggest that you make a list of all your home contents and personal possessions (including those of family members residing with you) and against each article write its current new replacement cost. This way you will not inadvertently under insure your contents. The consequences of under-insuring your contents are simple and are as follows: If the insurance company finds that you have insured your contents for $10,000 when they are really worth $20,000 and your loss is $5,000 then they will only give you $2,500 back. It is called the condition of averages and it is not unique to Cayman! (Sum insured/true value x loss) and this is the formula loss adjusters use. Brokers suggest you review your insured sum every year to update the commercial value.

There is a 3% deductible for catastrophe claims for non-waterfront property and 5% for waterfront property.

Note about insuring your kitchen contents:

If you are the owner of a property which is part of a strata apartment complex then in most cases your kitchen contents, (cabinets, fridge, cooker, dishwasher and microwave) will be covered on the strata’s building insurance. If you are the owner of a house (and it is not part of a strata) then you will have to insure your kitchen appliances as part of your contents insurance. Building insurance alone will not cover the replacement of your kitchen appliances. It is sometimes easier to find out who does your building insurance and insure your contents with them at the same time.

Car Insurance

(See the Transport chapter.)

Life Insurance

Numerous providers offer life insurance in Cayman. Most banks will require a term life policy to cover your home’s mortgage.

Insurance Providers

British American Insurance

Tel: (345) 949 5811 Fax: (345) 949 7192

Email: rmackenzie@baico.ky

Products offered: Life, Health, Pensions, Property, Casualty, Education and Annuities.

British Caymanian Insurance

Tel: (345) 949 8699 Fax: (345) 949 8411

Products offered: Life, Health, Pensions, Property, Motor and Casualty.