Thanks from an Insured who was being unfairly treated in a Business Interruption claim.

I and the team at LMI Group are known for taking on the large and complex losses, but the company also assists individuals and small business that are not being fairly treated under their contract of insurance.

In this case, a small restaurant that had been going for many years suffered a small but crippling fire. The Insurer’s loss adjuster was not proactive in arranging repairs and with no income in for four months, the restaurant owner accepted an offer for the building and abandoned the restaurant. The Insurer then denied liability for the Insured’s business interruption claim, saying that this was allowed in accordance with a clause in the policy. The distraught restaurant owners were given my name by an insurance broker based in Melbourne who had not arranged the insurance, but knew the family.

My colleague, Gordon Lum, and I met the Insured and it was clear from the outset that the clause was in fact being misinterpreted and the Insured was entitled to claim from the date of the damage to the date that they elected not to continue the business. Further, it was the fact that the agent of the Insurer, the loss adjuster’s slowness to respond, that forced the client to sell the building. If the adjuster had acted at a reasonable speed and/or recommended progress payments, the Insured would never have entertained the offer to sell.

Regretably, LMI was only appointed after the decision to sell the business was made and the business interruption claim had been denied.

Gordon and I could not put the toothpaste back into the tube and save the business as we would have done had we been appointed at the time of the fire, but we were able to have the business interruption claim reversed and the Insured’s full entitlement paid. Today both Gordon and I received the following email of thanks, which makes the effort all worthwhile.

5th June 2012

Attention:          Prof. Allan Manning & Gordon Lum

Dear Allan & Gordon,

I would like to thank you both for acting on our behalf. It is encouraging in this day and age to witness a team of dedicated, knowledgeable and professional people who are prepared to rigorously defend the rights and entitlements of ordinary people.

Once again, Natalie and I would like to express our gratitude for your achievement.  You will be highly recommended both now and in the future.

Good luck in your future endeavours.

Sincerely,

Natalie & John” [surname and email supplied]

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