Blog question – Possible time gap in coverage when changing insurers

Blog question – Possible time gap in coverage when changing insurers

One of the questions I received yesterday read: “I seem to recall a case where a customer switched insurers, neither insurer’s policy specified a start or expiry time, only a date.  A incident causing rise to a claim occurred on that specific date and both Insurer’s were passing responsibility to the other. What I can’t recall is the outcome, which insurer was ultimately responsible and […]

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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 […]

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Meth Labs pose an additional risk for Property Owners and Real Estate Agents

A staggering number of rented properties in Australia and New Zealand are being used for the illegal manufacture of the drug Methamphetamine turning the home into a clandestine Meth Lab. The question then arises what steps are reasonable for a property owner and or their real estate agents to ensure the property is free from any contaminate left by such an operation. Some matters It is […]

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When does the Indemnity Period end?

At LMI Group, we have an issue which comes across, almost in waves, in regards to a number of claims which needs to be addressed before the next flavour of the month adjustment to reduce an Insured’s claim. The one we have just overcome is where the adjuster has made a “notion” adjustment, without explaining the basis for it. Now, we have come across on […]

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A question that I have answered hundreds of times – the pros and cons of insuring for indemnity

In the last two days I have had very similar questions and thinking about it, it would be one of the most common questions put to me and I am surprised I have not posted an article on it before now. Good Morning Allan, Please can you advise if you have an article advising the Pro’s and Cons of insuring Commercial Buildings on an Indemnity […]

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Business Interruption Issues Series – Part 5 – Time Excesses – Part D – Possible Solutions

After addressing 3 common problems in time excesses last week, I return to the topic with some possible solutions. What is the Answer? I would suggest there are several answers to the problems of time deductibles, and would like to explore three with you. The first is to replace the excess/deductible with a franchise. If the insured business is disrupted due to an event for a […]

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Blog question: what is covered under a liability policy when it comes to a product failure?

Other than questions on business interruption, one of the most common questions I get asked of me at conferences, functions and here on the blog centres around the issue of product liability. Many people think that product liability insurance covers the product. It does not. It covers liability arising from a product, that is damage or personal injury flowing from a product. The following is […]

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Oh for the want of a comma

It was only last week that one of my colleagues picked me up for putting a comma before an “and” saying you should never do this. I explained that who ever had taught them this was wrong and that not only was it it was proper in some circumstances but extremely important to use it correctly where appropriate. I showed example after example but I […]

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Buying insurance on Price: Who would be that stupid to recommend that? Perhaps some who should know better!

Yesterday afternoon, Prof Allan Fels was complaining about the difference in price between home and contents insurance policies and advocating people shop around each year. While he is quoted as explaining there are differences between policies, the fact of the matter is that you typically get what you pay for, but it is not easy for the consumer to understand the complexities of the policies, nor […]

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Acts of God in Insurance

It amazes me how many times people have spoken of Act of God being both an insured or excluded peril under an insurance policy. There was even a famous Billy Connolly with this as its theme. My nephew, Jeffery, one of the guys sending me a joke questioned me on it and I thought it was worth setting the record straight. Despite having read thousands […]

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