As many readers would know the UK, like Australia are conducting a test case on whether UK policies respond to claims arising from COVID-19. The court has stated that judgment will be handed down at 10:30am GMT 8:30pm AEST on Tuesday 15 September 2020. While this will an interesting day next Tuesday with a lot of nervous Insureds and insurers looking on it will not set […]
Update on COVID-19 Paper
Back on 2nd March 2020, I posted an article setting out the way business interruption insurance was meant to operate in a pandemic situation and explained that many policies would not respond. In the paper, I explained the long standing approach to business interruption coverage as a result of a pandemic and that historically such events were specifically excluded. I went on to explain that […]
Where to get help in times of crisis
Yesterday, after I posted the article talking about the tragedy of suicide, I received a few messages checking on me and, some other, thanking me for touching this sensitive topic. Today, I read that calls from Victorians to crisis support and suicide prevention service Lifeline are up 22 per cent since Sunday, compared to the same time period last year (thank you, Janette). They received […]
Suicide: the hidden cost of a second shut down
On Friday evening, a person jumped in front of a train on the Glen Waverley line just near my home. My thoughts went to the family of the deceased, to the police and emergency service workers, and the innocent train driver. Then I asked myself ‘why?’, and I hoped that it was not due to the second shut down that has been ordered in Greater […]
Only about a quarter of Business Packs still have a Premium Adjustments Clause for Business Interruption
Traditionally, Business Interruption policies were sold on a declaration basis where the Sum Insured –or the Industrial Special Risks Policy, and others– modeled on this form, the Declared Value and the premium was based on this initial figure. The test for under insurance (Coinsurance or Average), was set at 100% and so it was, and is still, necessary for an Insured to set the Sum […]
Blog question – Does COVID-19 create a force majeure situation?
This question was asked of me over the weekend and before I put down my own thoughts, I did a quick search and found a great article by Paul Venus and Scott Alden, from Holding Redlich, that covers the issue extremely well. Rather than reinvent the wheel, I simply attach a link to their quality analysis. Thank you gentlemen, well done! https://www.holdingredlich.com/force-majeure-and-covid-19-what-you-need-to-know-now What I would add […]
ISR Question on physical damage trigger for interruption claim
Hi Allan, For your interest, we have just placed an ISR [Industrial Special Risks] MKIV [Mark IV} Modified co-insured risk, part in Australia and part in London. The risk does not have any Section 2 cover for Diseases, Murder, Suicide, etc. and also contains a Communicable Disease Exclusion clause. That aside, London have modified the schedule of cover as follows: Section 2 – Consequential Loss […]
Claims Survey Counts to Mansfield Awards
As with so many events, the Mansfield Awards for Claims Excellence cannot go ahead in its normal format this year. However, recognition of the industry’s claims teams is as important as ever, following the Hayne Royal Commission, a 230% increase in reported breaches, and a summer of record-breaking natural catastrophes. Claims teams are also confronted with claims arising from the pandemic, in levels not experienced […]
Update/Correction on Jobkeeper payments under NSW Workers’ Compensation rules
Yesterday, I posted an article that included my disappointment that businesses were potentially being penalised by having to pay WorkCover premiums on JobKeeper payments to workers who were not in fact working. This being brought to my attention by an experienced insurance broker. The original source was this notice on the icare website. I am pleased to advise that the icare website appears to have […]
New South Wales fails New South Wales business and home owners
Two pieces of news staggered me yesterday. The first was reported to me by one of our readers, thanks Margo, stating that the New South Wales government are requiring employers to include the Job Keeper payments in the Workers Compensation wages calculation. This means those employers that have embraced the scheme to help their employees and get them some wages even though they are not […]