Claim Preparation Costs - Property & Business Interruption
On 29 November 2002 a fire in premises operated by XYZ Parts reduced it to rubble.
Loss adjusters attended, advised the cover was adequate and requested details of all reinstatement costs as incurred.
The Policyholder contracted architects to draw building plans destroyed in the fire, a project manager to supervise the building works and accountant to re-create accounting records.
The Policyholder included the fees invoiced by these consultants in their claim under the heading of Claim Preparation Costs. They also included an allowance for time worked by the General Manager and staff for collation of documents associated with the claim.
The submission for Claim Preparation Costs was denied.
The Industrial Special Risks Mark IV policy covers those reasonable Claim Preparation Costs for preparation of claims under Section 1, Material Damage and Section 2, Business Interruption.
The fees invoiced by the Architect and Project Manager should were successfully resubmitted under the Section 1 cover for Professional Fees. Part of the fees invoiced by the Accountant should have been claimed under the Section 1 cover for Rewriting of Records. The policy does not respond to time worked by management and staff which would have been paid irrespective of the fire.
Appointment of a claims preparer allows management to focus on running their business. The claims preparer’s fees may be covered under the cover for Claim Preparation Costs.
See Also: - Choosing A Claim Preparer
See Also: - The Benefits of Appoiting a Claim Preparer
Author
Published with permission of Claim Solutions Pty Ltd.
Insurance Policy
Country: - Australia.
Policy Description: - Mark IV Industrial Special Risks (ISR) policy.
Insurer: - Not Supplied.
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