Blog Question – Advanced Loss of Profits

Blog Question – Advanced Loss of Profits

I received a question from a reader seeking some information around Advanced Loss of Profits cover for a construction project, I share my answer to the reader below with you all too. Advance loss of profit (“ALOP”) insurance provides coverage for financial losses due to delays in construction and infrastructure projects caused by an insured peril(s). ALOP also called delayed completion coverage or delay in […]

Read Me

Increases in NSW ESL leads to expected drop in insurance protection

Increases in NSW ESL leads to expected drop in insurance protection

It has already started to happen. Over the past week I have been contacted by both insureds and brokers advising that they/their clients have elected to drop business interruption or elect not to fully insure due to the increased financial burden created by the massive increase in Emergency Services Levy. I try and explain the risk that the business is taking on by not insuring […]

Read Me

When to appoint a claims preparer? The earlier the better

When to appoint a claims preparer? The earlier the better

After handling claims as a claims preparer now for over 20 years full time one bit of advice above all others stands out. That is that the earlier a competent expert is appointed to assist the Insured mitigate their loss and quantify and present their claim, the better. So often, we are only engaged many months after the event, often when the Indemnity Period has […]

Read Me

Where insurance can appear unfair and not in the best interests of the consumer

Where insurance can appear unfair and not in the best interests of the consumer

There are a couple of areas of the law that can appear to be unfair to an insured. A recent case has highlighted one. In Globe Church Incorporated v Allianz Australia Insurance Limited & Anor [2019] NSWCA 27 Globe Church argued that time started to accrue when the ISR insurers breached their obligations under the policy by not indemnifying Globe Church and not from the […]

Read Me

Back at the desk

Back at the desk

I have been a bit quiet on the posting front over the past month as I have been travelling in North America for both business and having a much needed break. During the trip Steve Manning and I had several meetings with potential clients for our on line products, met with old colleagues who are interested in representing LMI in North America and attending a […]

Read Me

Can interest on a loan be claimed under a business interruption policy?

Can interest on a loan be claimed under a business interruption policy?

One issue keeps coming up more regularly internally here at LMI than any other and that is loss adjusters refusing outright to consider additional interest being claimed as an Increase or Additional Increase in Cost of Working. I cannot understand why this is an issue as I know of hundreds if not thousands of cases where it has been paid. Yet what is happening is […]

Read Me

Books glorious books – LMI Library continues to grow

Books glorious books – LMI Library continues to grow

The LMI Library continues to grow through 3 methods. Purchases we make when we see a newly published book on an insurance or risk management topic; Books that I or the team at LMI publish; and The very generous donations by those in the insurance industry who are looking for a good home for their own collection/library. Over the past week we received two wonderful […]

Read Me

Are Interest Costs claimable as an Increased or Additional Increased Cost of Working?

Are Interest Costs claimable as an Increased or Additional Increased Cost of Working?

This is a question often put to me as some loss adjusters and insurers push back when it is claimed. If I start with the actual wording from the Australian Industrial Special Risks policy which is found in many other policies, it reads: “The Insurance under this Item is limited to Loss of Gross Profit due to: (a) Reduction in Turnover; and (b) Increase in […]

Read Me

Blog Question: How do you deal with Increased Cost of Working incurred during a Waiting Period (Time Excess)?

Blog Question: How do you deal with Increased Cost of Working incurred during a Waiting Period (Time Excess)?

I received this question which comes up from time to time. Hi Prof. Manning, As we know, the increased cost of working (ICOW) of Business Interruption (BI) insurance, that certain expenses may be incurred following loss or damage to try and maintain business activity, such as renting alternative premises, hiring additional staff and additional advertising. What happens if the interruption is shortened under deductible days […]

Read Me

Blog question – Additional Increase in Cost of Working under an ISR

I received this question which I felt was worth sharing. Allan, I have for many years referred to your most excellent publication for guidance relative to BI [Business Interruption] insurance. The guide makes reference to the Industry Mark IV wording and it is in respect of the Mark IV wording that I have an enquiry, where I could not locate any reference to my particular […]

Read Me