I am hosting a 4 part training session on the ISR Policy starting on 27th August 2025. Each session will run on line for approximately 1.5 hours over 4 weeks. The course is suitable for those new to the ISR policy right through to experienced hands and covers all sections of the policy starting with the all important policy schedule in week 1. Places are […]
Mistakes in setting sums insured / declared value where the Insured elects an Indemnity Period of less than 12 months.
I recall the very first business interruption claim I did was for a risk in Toowoomba and to my horror found that the Insured had only declared 3 months insurable gross profit with a 3-month Indemnity Period. That sum insured had not been reviewed for many years and as a result of 100% average, as it was on that policy, the client received only 6.9% […]
Does a Strata Policy provide coverage following a terrorism event?
In my most recent post, I explained that commercial strata follows the same rules as commercial property and business interruption as it is regarded as ‘”‘eligible property’. In summary, if the Minister for Finance declared an event a Terrorism Event, then any terrorism exclusion that appears in the policy of insurance of an eligible property is void. Claims will be met in accordance with the […]
Question on Terrorism Exclusion
A concerned Insured wrote to their broker with the following question and the broker in turn asked me to assist to ensure they provided the correct response. Question I have previously spoken to you about the following; however, I would like to have this tabled in writing. Given the current domestic acts of violence, we are witnessing towards [some] organisations and houses of worship, please […]
Is the Indemnity Period long enough
In the claims we are handling we are seeing more and more that the Indemnity Period runs out before the business returns to normal. This is due to a number of issues including but not limited to: The final point has promoted LMI to include in our service a clinical psychologist to assist clients during the process. Click here for more details. With this background […]
Property of Employees and Members of Clubs under an ISR Policy
The ability to provide protection to an insured for the property of the organisations directors and employees at the situation has been available under the Australian Industrial Special Risks Policy since at least 1987. The importance of the coverage has increased over time as the take up of contents insurance in Australia has fallen in line with the increase in apartment living, while the traditional […]
The outlook for bushfires in Australia for the 2022-2023 Summer
The following is a media release from the Australian and New Zealand National Council for fire and emergency services setting out their estimate of how this coming summer’s fire season will play out. As it is so important to the insurance industry and business and personal lines insureds, I share it with you in case you have not seen this important research. AFAC, the National […]
Insureds should not rely on bank valuations to set their building sums insured
Through out my 50+ years in claims I have seen countless claims where the Insured has relied on a bank valuation to set the sum insured on their commercial building. The valuation that is prepared for a bank is typically conservative to protect the valuation company from a having to explain why their value was lower than what the bank sold it for during a […]
A reminder that building costs and construction times have increased
Anyone that has been able to get inside a Bunnings or other hardware/timber suppliers will have seen the empty shelves in the timber section, particularly in framing timbers. A shortage of many building materials is matched by an increase in demand and this has led to a sizeable increase in the cost of construction. At the same time many insureds are looking to reduce their […]
Early insured loss estimates from the US Artic Freeze
The early estimate on insured losses flowing from the recent Artic freeze in Texas, Louisiana, Mississippi, Tennessee, and Oklahoma have come in at a staggering US$18 billion.1 As has been reported on the news, the hardest hit was Texas, where 4.5 million lost power, 8.8 million lost water or were warned to boil their water, and 35 people perished. As so often happens, reports are […]