Blog Question: Claims Preparation Costs

Insurance Signpost Mean Claim Excess Contract And PolicyI received this question last Thursday but only got to answer it his morning.

Dear Allan,

I just read the article about the pub burn down at Roma. I have a few outback pubs, one in particular I need to review his cover because it is grossly inadequate. we just took it over from another broker.

With regards to claims prep is there is a going amount we should use, like a % or $ figure.

Regards

Scott [surname and email provided]

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Hi Scott,

Sorry for the delay in replying it has been March madness come early with the cyclone. For smaller ones I would have $50,000 in total, that is if the policy grants $25,000 standard seek another $25,000.

If it is really remote move it up another $10,000 to allow for travel time and costs as this can add up.

If you have one or more on an ISR I recommend you start at $150,000.

Do not forget LMI BIcalculator with the review and you can test you rate of Gross Profit against the indicative rate within LMI RiskCoach.

I hope this helps.

Regards

Allan

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Scott just wrote back as I was posting this:

Thank you Allan, I owe you a barra!

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Anytime Scott

One response to “Blog Question: Claims Preparation Costs”

  1. David Mansley says:

    I am just about to finalise a $700k stock loss claim for a client in WA, and LMI have been instrumental in ensuring a prompt and efficient settlement. $100k Claims Prep limit, so I had no hesitation in bringing them on board on the day of the incident. Well done Rex Manning-Voyce.

    David

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