On May 26, I posted an article on two existing claims. Click here to read. As a follow up to that post on both matters I would advise the following. On the first one, I ran into one of the fire investigators on this matter and he said that Erik from LMI South Australia determined that it was a valid claim on the first day he […]
Blog Question – Loss of Rent for Related Entity
This is a common question and one I have in fact answered on the blog before. The question asked was: My Client operates at large retail business They own the Property and occupy the property under different entities but insured under the one ISR [Industrial Special Risks Policy] The Tenant company pays the landlord Company $774,000 per annum and this is shown clearly as expenditure in […]
Victoria Government Reduces Fire Service Levy on Property Rates
It was pleasing to see that the Victorian Government have reduced the Fire Service Levy (“FSL”) now that the bungled transition has settled down. Refer to government media release. As predicted, it shows that when a tax is more broad based and everyone pays their fair share for a service the entire community benefits from, the cost is not so unpalatable. It would be good now […]
Risk and Insurance Trivia # 1
Lighthouses have saved thousands of ships and countless lives over the centuries. The earliest ones appear to have been towers in which fires were lit and tendered by priests or monks. The first purpose built lighthouse is believed to have been the Pharos of Alexandria (Egypt on the Mediterranean Sea) built in the third century BC. A top this massive structure the light from a fire […]
Many in the UK are unhappy at an ancient law that allows insurers to recover from the local authority.
One of my readers, Kumar Chinnasamy, a Risk Engineer with SBI General Insurance in Coimbatore, India, passed on this article that Joshua Rozenberg published in the Guardian on Wednesday, 21 May. The article has created a lot of comment with the public who are angry that insurers can seek recovery from government, while others are angry at the judges. Australia and most parts of the world do not […]
Should “No Frills” Home Policies Still Provide Full Protection in the Event of a Major Loss?
This is a question I have been asking myself my and more as I check wordings for people when they ask me if their particular home policy is okay when they hear what I do. I typically go to LMI’s PolicyComparison.com on my iPhone, iPad or laptop. Most times I point out areas that are of concern such as very low limits for removal of debris, loss […]
Justice Prevails at Long Last; but Another one Immediately Takes its Place
Back in October last year I wrote warning of a change that had crept into many Home and Contents policies (and contract works policies for that matter) in that faulty workmanship, faulty materials or faulty design was a blanket exclusion with no write back for resultant damage such as a fire. [See http://www.allanmanning.com/traps-with-some-home-and-contents-wordings-trap-1-faulty-workmanship] What this means is that someone could go to a reputable retailer […]
MOP /Stock Throughput Covers – An Analysis – Part 5 – Where Stock is Insured for Full Retail Price do I need Business Interruption Insurance?
The simple and firm answer to this is YES YOU DO. There are a great many reasons for my taking this view. In summary they include: If there is no Business Interruption cover in place, the only time the Insured can claim for any consequential loss of profits is following a loss of stock. The maximum amount claimable is the difference between the cost price of the stock […]
MOP /Stock Throughput Covers – An Analysis – Part 4 – The Trigger for Business Interruption Under an ISR when an MOP is used to Insure Stock
A common question asked me of me, that prompted me to write this series (this is the fourth) of articles on MOP / Stock Throughput policies, is “can the Insured still make a claim for Business Interruption when the only thing damaged is stock and this [the stock] is not insured under the business pack or ISR policy?” The trigger for a Business Interruption claim under an […]
MOP /Stock Throughput Covers – An Analysis – Part 3 – Where and What is Covered Under a MOP Cover
This is article three in a short series explaining Manufacturers Output policies / Stock Throughput policies. Today we start with, “where is the stock covered?” As I always say, no two policies are the same so please check the policy you are contemplating using but often the locations include: Worldwide coverage Insured’s own location Retail locations Warehouses, Processing locations and Distribution Centres Exhibitions Unnamed locations […]