General Area Damage Extension - Business Interruption

In January 2003 a chairlift in Dromana, Victoria, Australia collapsed. This highlighted the risks of such unforeseen events and the impact to the area. Media discussion indicated the chairlift was closed for some time. The chairlift is a recognised attraction to the area for international, national and local tourists.

Not only did the revenue earning capacity of the chairlift operators temporarily cease, other businesses in the area also suffered financial loss due to the consequent decline in tourist traffic.

A similar situation may arise if a fire or other loss event occurs at the premises of one business in an industrial estate, limiting access to other businesses. Production may cease, staff may be evacuated and it may be days before access is permitted because of the risk of hazardous chemicals or a flare up of the smouldering embers.

The Material Damage proviso requires that there must be insured damage to the Policyholders property for the policy to respond.

If available, an appropriately worded General Area Damage extension may assist.

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Author

Published with permission of Claim Solutions Pty Ltd.

Insurance Policy

Country: - Australia.

Policy Description: - Mark IV Industrial Special Risks (ISR) policy.

Insurer: - Various.

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