Consideration Of Excesses And Deductibles
In a "hard" insurance market premiums, excesses and aggregate deductibles often increase.
Caution needs to be exercised even when initial estimates suggest property damage is minimal, falling under the deductible.
A "small" property loss may result in a significant Business Interruption. For example, if machinery destroyed by an insured event is manufactured overseas, in excess of 6 months may elapse before full production can be restored. The time required to order, manufacture, ship and commission equipment can be considerable.
Alternately an initial loss under the deductible may be the first of several events during the insurance period which, when combined, exceed the aggregate deductible.
Losses under an aggregate deductible still require the same elements of proof of loss, consideration of policy issues and compilation of information which is best performed shortly after the damage.
The potential claim against a negligent third party should also not be forgotten where there is limited insurance cover.
Claims should be identified promptly to ensure insurers are appropriately notified, all information is captured, quantum is accurately assessed and claims costs minimised.
Author
Published with permission of Claim Solutions Pty Ltd.
Insurance Policy
Country: - Australia
Policy Description: - Various
Insurer: - Various
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