Many indirect costs are incurred in property reinstatement but where exactly are these covered under a Mark IV Industrial Special Risks (ISR) policy?
For example are a quantity surveyor’s costs, a review by the Environmental Protection Authority, the replenishment of fire extinguishers, temporary fencing and an employee’s own tool box able to be claimed in the event of loss?
Section 1 Material Damage of the standard policy contains 7 additional benefits. These are outlined as follows.
a) Professional fees. These include architects, surveyors, and consulting engineers, legal and other fees for estimates, plans, specifications, quantities and tenders. They must be incurred in reinstatement of damaged property and cannot include any costs of preparing a claim.
b) Government/statutory fees. A fee payable to any Government, Local Government or other Statutory Authority where payment relates to obtaining their consent to reinstate damaged buildings. It does not include any fines and/or penalties imposed by such Authorities.
c) Fire extinguishment costs. These include:
- extinguishing a fire for the purpose of preventing or diminishing imminent damage to property
- damage to gain access
- the cost of replenishing fire fighting appliances
- shutting off the supply of water or other substance following accidental discharge from any fire protective equipment.
d) Temporary protection & safety of property. This includes costs related to the protection of property that has been damaged pending its repair or replacement.
e) Costs of replacing locks, keys and/or combinations where there is a burglary or theft and the cost of opening safes and/or strongrooms.
f) Removal of Debris. Costs claimed include the removal, storage and/or disposal of debris or the demolition, dismantling, shoring up, propping, underpinning or other temporary repairs as a result of insured damage. Cover does not extend to pollution.
g) Clothing & tools of trade belonging to directors & employees. The replacement cost with due allowance for wear and tear is claimed.
These additional benefits do not require separate sub limits unless imposed by insurers for premium purposes as is often done with Removal of Debris. They are restricted to the overall Limit of Liability but are not subject to the co insurance clause (underinsurance provision).
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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