ISR Additional Benefit # 4 – Temporary Protection

This week I look at the fourth of the additional benefits afforded by the Australian Mark IV Industrial Special Risks Policy, “Temporary Protection”.

As with all these benefits, they do not have an official heading, but for convenience I gave each a descriptive heading when I wrote my book on the Policy back in 2006.

The wording of this particular benefit is the same for both the Advisory and Modified versions of the Mark IV. The clause reads:

Subject to the liability of the Insurer(s) not being increased beyond the Limit(s) of Liability already stated herein, the Insurer(s) will also indemnify the Insured for:…

(d)       Costs and expenses necessarily and reasonably incurred for the temporary protection and safety of property hereby insured pending repair or replacement consequent upon damage recoverable hereunder.”

I would start by saying that this benefit, I believe would include the cost of engineers’ fees to advise on the nature and extent of the temporary protection.

On my reading of this additional benefit, I feel that it would cover the cost of propping up leaning walls or partially collapsed ceilings to allow the safe removal of stock and/or machinery, plant and other contents as well as the removal of the salvaged property to a safe, dry environment while the buildings in which they were situated at the time of the loss are being repaired.

The propping cost is also covered under Additional Benefit (f)(i) which we will cover in more detail in 2 weeks’ time. In the meantime, I would advise that Additional Benefit (f)(i) reads:

Subject to the liability of the Insurer(s) not being increased beyond the Limit(s) of Liability already stated herein, the Insurer(s) will also indemnify the Insured for:…

(f) Costs and expenses necessarily and reasonably incurred in respect of:

(i) the removal, storage and/or disposal of debris or the demolition, dismantling, shoring up, propping, underpinning or other temporary repairs consequent upon damage to  property insured by the Policy and occasioned by a peril insured against;”

The temporary protection cover included in Additional Benefit (d) would also include the cost of hiring tarpaulins, engaging security guards, etc. In fact, this cover provides for a myriad of expenses that could be incurred by a prudent Insured in its attempt to minimise further damage to the building itself.

As the benefit received by taking this action is for the benefit of both the Insurer and Insured, it is my firm belief that this item should not be sub-limited.

One response to “ISR Additional Benefit # 4 – Temporary Protection”

  1. Sharon says:

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