Assets All Risks (AAR) Insurance in Ghana

Assets All Risks (AAR) is a comprehensive property insurance product that covers physical assets — buildings, contents, stock, machinery, and equipment — against a wide range of perils including fire, theft, flood, and accidental damage. It is one of the most commonly placed non-motor insurance products in Ghana.

What does AAR insurance cover?

An Assets All Risks policy covers physical assets against loss or damage from any cause except those specifically excluded. Standard covered perils include:

Fire and explosion

Lightning and thunderbolt

Theft (with forcible entry)

Flood, storm, and water damage

Accidental damage

Earthquake and volcanic eruption (usually by extension)

Riot, strike, and civil commotion (usually by extension)

Malicious damage

Common exclusions: Wear and tear, mechanical breakdown, war and terrorism, wilful damage, stock in trade losses without forcible entry.

What assets can be covered under AAR?

AAR policies can cover a wide range of asset categories:

Buildings — office blocks, warehouses, factories, residential properties

Office contents and furniture

Stock and merchandise

Plant and machinery

Electronic equipment — computers, servers, telecoms equipment (rated separately at 1.0%)

Mobile equipment — laptops, phones (rated at 1.0%)

Cash in safe (limited — standalone money insurance is more appropriate for high cash holdings)

Each category is listed with its own sum insured. The total sum insured across all items determines the overall premium.

How is the AAR premium calculated in Ghana?

The AAR premium is calculated as:

Sum Insured × Annual Rate = Basic Premium

Minimum rate under the Ghana tariff: 0.45% for most standard items.

Electronic and mobile items: 1.0% (higher risk of damage and theft).

The basic premium is then adjusted for:

Extensions (earthquake, riot & strike, etc.) — small additional loadings

LTA discount — if a long-term agreement is in place (10–15%)

Deductible — policies carry a standard excess of 10% of each loss, minimum GHS 500

Then:

Fire levy is added

VAT at 20% is applied to the net premium

The resulting figure is the total premium payable.

Common AAR extensions in Ghana

Brokers can add the following extensions to a standard AAR policy:

Earthquake and volcanic eruption

Atmospheric disturbance (storm/flood beyond standard)

Riot, strike, and civil commotion

Spontaneous combustion

Impact by vehicles or aircraft

Subsidence and landslip

Malicious damage (if not already included)

Business interruption / loss of profits (as a separate section)

Not all extensions need to be taken — the broker selects those appropriate to the client's risk profile and location.

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Frequently asked questions

What is the minimum rate for AAR insurance in Ghana?

The minimum rate for most standard asset categories under the Ghana tariff is 0.45% of the sum insured per year. Electronic and mobile equipment is rated at a minimum of 1.0%.

Do I need a valuation to take out AAR insurance in Ghana?

For high-value assets, insurers may require a professional valuation to confirm the sum insured. For smaller portfolios, the broker typically works with the client to establish replacement cost values.

Can AAR cover stock in trade?

Yes. Stock and merchandise can be included in an AAR schedule. Theft cover for stock typically requires evidence of forcible entry — straightforward stock disappearance without signs of break-in is usually excluded.

How is VAT applied on AAR premiums in Ghana?

VAT at 20% is applied to the net premium (after discounts and before the fire levy). The fire levy is then added separately. Your quotation sheet will show the full breakdown.