Property & Business Interruption Claims From The Policyholder's Perspective

The following interview with a Policyholder who suffered a commercial property & business interruption loss provides a valuable insight into the claim process from the Policyholders’s perspective: -

1. What was the most suprising element of the claim?- A number of areas surprised me. The first was the level of documentation required. I had no idea it would be necessary to produce documents for almost every component of the claim including quotations, invoices, payroll records, sales records and profit and loss statements. I was also surprised at the level of specialist assistance available including fire reinstatement specialists, engineers and accountants.
2. What was the most satisfying area of the claim? - Its completion! Our claim arose from a fire which affected the business for around 9 months. The claim was settled 12 months after the date of loss. It was a lengthy process requiring considerable time commitment. My staff and I would have had to devote much longer hours to the claim if we had not appointed Claim Solutions to share the workload and direct our activities.
3. What was the most disappointing element of the claim? - Cash flow! The fire caused an immediate and ongoing reduction to sales. Many costs such as wages, power & a proportion of rent, continued. Our resources were further drained when fire reinstatement builders required us to pay the GST on building works up front before commencing work. Progress payments from Insurers did not alleviate this problem as these were made irregularly and well after costs were incurred.
4. Would you do anything different in the event of another claim? - Yes – I would appoint a claim preparer from the inception of a claim.
5. Do you have any recommendations for other claimants? - Review your insurance policies now. Make sure they are adequate before you have a loss. Document, document, document! It is important to record all activities associated with the claim. I suggest you keep a diary of all communications and a file containing all correspondence, quotations, invoices, payroll records, etc.

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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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