A link to http://backpackertradenews.com.au/insurance-rip-off-17642 was sent to me by a frustrated insurance broker. The following is an the article which criticises the insurance industry in Queensland for the rising cost of insurance. Insurance rip-off… Queensland hostel operator Brent Gemmell is unimpressed with the constant rise of insurance premiums… What is happening with our insurance? As an industry we have been stung well over the top […]
Question on the Correct Complaint Procedure for General Insurance and Policy Excess
In response to my article posted on this blog on 26 February 2012 regarding a comment made by the Financial Services Ombudsmen (http://www.allanmanning.com/?p=630), I received the following question: We are trying to put a complaint in about our General Business insurance which is the best way of getting this done. Our complaint is about work never completed after storm damage but the company requires us […]
Time for the Annual Flu Shot
As part of my personal risk management, my family and I attended our doctor yesterday and got our annual flu shot. With the upcoming flu season, you may wish to consider doing the same. I know that with all the travel I do, the amount of people I meet and the long hours I work, I need to give myself a fighting chance to avoid […]
The Treatment of Solar Power Generation Under a Business Interruption Claim
The issue of revenue generated by, or reduced operating costs achieved by, an insured company generating some of its own power has not really been addressed by the Accounting Standards and can easily be overlooked in the calculation of the sum insured/declared value under a business interruption (consequential loss of profits policy/section). When checking a business interruption calculation prepared by an external accountant, one of the […]
Question on NSW Fire Service Levy
I received the following question recently: Dear Campaigner, Thanks for your great work & NoTaxOnInsurance website. GIO has billed me Fire Service Levy of $43.77 on a unit contents premium of $218.84. That’s 20%, but perhaps 40% as only one half of GIO’s premium income is counted for the levy. Do you know what the % of the insurer’s premium income is levied? It looks […]
Blog Question on Landslip
I received this short question regarding landslip yesterday. Hi Allan, Which Victorian insurers provide insurance against landslip resulting in loss of home or contents? Regards Rodney C [name and email supplied] The easiest way for me to answer this question is to go to www.policycomparison.com and download a list of all the domestic policies I know after choosing two selection criteria, namely: “Earth Movement following […]
BI Additions versus Difference Method – beware the difference
When Business Interruption Insurance was developed in the early 20th Century, the method of calculating insurable Gross Profit was to start with the Net Profit and add to it the business expenses that were likely to continue should there be a disruption to the business. These listed insured expenses were known as Insured Standing Charges. This became known as the “Additions Method” for obvious reasons. Two […]
Question on Removal of Debris
I was asked this question on removal of debris during the week. Hi Allan, I am just looking for some advice. We have a client who are manufacturer, fill and distribute spray paint cans and the like. The largest asset value per location is $12,000,000 at Wacol, an industrial suburb [in Brisbane Australia], and we have the ROD [removal of debris] set at $1,000,000. We […]
Can you insure against the disruption caused by a road upgrade by a main roads department?
I received the following question this morning. Morning Allan, I need your opinion please, I know you are extremely busy and I appreciate your time. Contractors for the [Queensland| Main Roads Dept have torn up the Bruce Highway in my town for major oadworks (planned), and in so doing have denied access for my client’s customers. As a result their cash flow is severely reduced, as it […]
The need to consider claims service and policy coverage, not just price, when purchasing insurance
In the last week I tried to hold discussions with an insurer who would not make a progress payment on business pack policy. This is the fifth claim I have had with this one insurer and it is the fifth time I have asked myself why anyone would ever want to insure with them. In this latest incident, the fire happened over a year ago and the […]