Blog Question: Claims Preparation Costs
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.
Scott [surname and email provided]
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.
Scott just wrote back as I was posting this:
Thank you Allan, I owe you a barra!