Blog Question: Disruption Caused by Damaged to Landlord’s Property

http://www.dreamstime.com/stock-images-investigation-image27958864This question is a follow up to a earlier posting on the trigger for a Business Interruption claim (refer http://www.allanmanning.com/blog-question-trigger-for-business-interruption/).

Good morning Allan

I read your earlier article on the trigger for a business interruption claim. My query is in respect of a [Australian]  Zurich  business package wording.   

Question is will the Business Interruption policy section respond if the building is damaged (being a tenant they only have the contents insured with business interruption). 

The definition of damage, unlike an ISR or many other business packs does not indicate policy would respond to landlords premises damage.   

I would appreciate your thoughts on this.I am visiting this client tomorrow morning to discuss their  question further.  Perhaps the prevention of access clause may apply but again does not seem to be clear on this.    

Thanks and regards,

 John [surname and email provided]

I start by referring to the policy version that I am looking at to answer the question. The policy is the Zurich Business Insurance policy print code PCUS-008274_V2_0114 12/03/2014 which was only released last month.

I would refer you to the Extensions of Cover on page 32 which states:

2. Landlord’s property and Other non-owned property used by you at the premises

We will pay for loss of income that results from an interruption of your business that is caused by insured damage to your landlord’s and/or other non-owned property used by you at the premises.

While this policy does not slavishly follow the traditional business interruption wording, the cover, not only on this issue, is just as good if not better than most policies in the market.  This is a generic statement and should not be used as the sole basis for selecting a policy. The Insured’s risk exposures and risk appetite always need to be identified before choosing the policy to recommend.  To identify the coverage features and benefits, as the creator of www.PolicyComparison.com, I naturally suggest this is the best starting point.

Having said this, on the question raised by the client, cover is clearly in place for the risk that they have identified as important to them.

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