NSW Faces Catastrophic Future
The Importance of Rent Default
Residential Strata Insurance - Fact Sheet
Manufacturing a profit is hard work! Let us help you protect it!
Many Company/business owners are unknowingly exposing their profits and personal assets by not having the right Insurance protection for their business.
Why is this so?
See the following claim scenario’s and assess if your business is adequately protected!
1. Insufficient Indemnity Period
A company sustained a major fire to their premises and after building tenders, council approvals etc it took 6 months just to commence the rebuilding. It took a further 9 months to rebuild and a further 6 months to regain pre loss turnover. The company only had cover for a 12 month indemnity period.
Total gross profit loss to the business $3.5 Million: Insurance pay out $1.6 Million.
2. Gross Profit Under Insured
Again a company sustained a major fire to their premises. Gross profit declared for insurance purposes was $4 Million. The company’s Gross profit had not been properly assessed and the true gross profit should have been $8.5 Million. Therefore under-insurance of 53%.
The Gross profit loss was $4 million: Insurance pay out $2.2 Million.
3. Business activities not properly assessed
An Import and Distribution company not only supplied product to their customers but they also undertook installation of same at their customer’s premises. A fire ensued during the installation process due to the negligence of the supplier causing severe damage to the building plus major disruption to the business.
The Supplier had not advised their insurers of their off - site installation activities and therefore had no protection under their Insurance policies.
The customer successfully sued the supplier for $2.3 Million: Insurance pay out Nil.
Even worse, the business went into liquidation and the business owner lost everything including his home.
It is a fact that businesses involved in a major loss - 43% never trade again and 28% fail over the next 3 years. Which means only 29% survive and 71% disappear.
Common problems include:
1.
Inadequate Sums Insured
2.
Policy does not reflect true exposures of the business
3.
Uninsured Risk not identified
4.
Business Interruption cover has been poorly arranged
This is why a review of a company’s current insurances is a must for any business.
