How is a commercial Record of Advice different from a personal-lines one?

The FAIS requirement is identical — record the basis of the advice — but commercial cover spans many more sections (business interruption, liability, plant, stock), so the recommendation must be motivated per section rather than for the policy as a whole.

Does the ROA need to address business interruption specifically?

Yes. Business interruption is where commercial advice is most often challenged, so the indemnity period and gross-profit basis should be recorded and agreed with the client explicitly.

Can Broker AI handle multi-section commercial schedules?

Yes — it extracts each section, its sum insured and settlement basis from the schedule and structures the ROA around them, so nothing is motivated by omission.

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Commercial Record of Advice for South African brokers

A commercial Record of Advice carries more moving parts than a personal-lines one — multiple sections, business-interruption values, higher sums insured and a wider set of exclusions to motivate. Here’s what a defensible commercial ROA covers, and how Broker AI drafts one from the client’s schedule in minutes.

Reviewed 8 September 2026 · Broker AI team

What a commercial ROA has to motivate

The FAIS duty is the same as personal lines — record the basis of the advice — but commercial cover is broader, so the recommendation must speak to each section:

01The sections of cover recommended (buildings, contents, plant, stock, business interruption, liability, motor fleet) and why each fits the business.
02Sums insured and the basis of settlement (reinstatement, indemnity, first-loss) agreed with the client.
03The business-interruption indemnity period and gross-profit basis.
04Material exclusions, warranties and conditions the client must meet — and that they were disclosed.
05Average / underinsurance implications, explained per section.

Where commercial ROAs go wrong

Business interruption under-scoped

The indemnity period or gross-profit sum doesn’t match how long the business would actually take to recover — the single most common commercial gap.

Section-level averaging missed

Underinsurance on one section (e.g. stock) isn’t flagged because the ROA only speaks to the policy as a whole.

Warranties not motivated

Security, fire-protection or record-keeping warranties are recommended but the ROA doesn’t record that the client can meet them.

Draft a commercial ROA from the schedule

Upload the commercial policy wording and schedule and Broker AI extracts every section, sum insured and the business-interruption basis, then drafts a FAIS-aligned commercial Record of Advice you review and finalise — section by section. POPIA-aware, built for South African brokers.

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Frequently asked questions

How is a commercial Record of Advice different from a personal-lines one?: The FAIS requirement is identical — record the basis of the advice — but commercial cover spans many more sections (business interruption, liability, plant, stock), so the recommendation must be motivated per section rather than for the policy as a whole.
Does the ROA need to address business interruption specifically?: Yes. Business interruption is where commercial advice is most often challenged, so the indemnity period and gross-profit basis should be recorded and agreed with the client explicitly.
Can Broker AI handle multi-section commercial schedules?: Yes — it extracts each section, its sum insured and settlement basis from the schedule and structures the ROA around them, so nothing is motivated by omission.

This page is general information about FAIS record-keeping, not legal or compliance advice.