Blog Question: Additional Increase in Cost of Working for a Property Owner

The word Why in red 3D letters and a question mark to ask the reHi Allan,

My insured is a property owner and the tenant is a restaurant. The annual gross rentals are insured for this under their Business Interruption Section.

Would you recommend that I also insure additional increased costs of working even though they are only a property owner? If so, what are the pros of this so I can discuss it with the insured?

Thanks & regards,

Hanan [Surname and email provided]

Hi Hanan

I would certainly buy some additional Increase in Cost of Working for a property owner.

The money can be used for advertising, rent free periods or to pay a builder to speed up the repair time by working overtime or rostered days off.

This is particularly important where the Indemnity Period is too short to reinstate the damaged building and find a new tenant should the worst happen.

I think it is a vital cover for every client under any business interruption policy.

Allan

 

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