Blog Question: Business Interruption claim following damage to a motor vehicle at the situation
This is the question put to me:
If a storm damages a truck on site, does the Insured have recourse for the hire cost through their AICOW [Additional Increase in Cost of Working] cover under their ISR [Industrial Special Risks] policy having successfully claimed under their motor policy for the damage?
Jorge [surname and email provided]
My response was short and to the point.
On the face of it, the answer is yes as a result of the following memorandum found in the Mark IV version of the ISR policy
“REGISTERED VEHICLES AND / OR TRAILERS
Notwithstanding the provisions of Property Exclusion 5, this Policy extends to include loss resulting from interruption of or interference with the Business occasioned by Damage to registered vehicles and/or trailers whilst such vehicles or trailers are at the Premises owned or occupied by the Insured; provided always that this Policy does not cover loss resulting from physical loss, destruction of or damage to such vehicles and/or trailers whilst they are being used on any public highway or local thoroughfare.”
What this means is that despite the ISR policy specifically excluding registered vehicles, there is nonetheless coverage for business interruption losses, including Additional Increase in Cost of Working cover following from damage to a vehicle. The vehicle needs to be at a named situation and there is no cover for road risk. But in your case, storm damage while the vehicle is parked at the Situation and/or Premises will trigger the coverage.
This same coverage is available in good quality business packs as well.
An excess may apply to the ISR policy.