7 things you should know about insurance claims and the Auckland power outages.
The Transpower sub-station fire has been major news. As you might expect, numerous businesses will incur losses – from multi-million dollar operators like Sylvia Park Shopping Centre, right down to the St Heliers Café that had to throw out its gelato.
As an insurance consultant who specialises in business interuption, people are asking me if they can claim. While each case is different and requires specific advice – here are some key points to consider:
1. Ask your broker to check your insurance policy wording with relation to interruption. Generally a business will have two relevant insurance policies and claims:
- A material damage claim - has there been physical damage to your property, stock, plant and equipment?
- A business interruption claim - does the business interruption utilities or other extensions cover this power outage?
2. What is the relevant excess in terms of time and money?
Most policies have a 48 hour excess. Assuming the power went out at 2am on Sunday, a business can only claim on costs (such as employee wages) from 2am Tuesday and onwards.
3. Will you suffer a loss of turnover or increased costs or other losses?
4. How much of these losses will be recouped once you are back to normal operations?
For example, a retailer that normally sells 10 TV’s on a Sunday, may sell 16 TV’s the following Sunday because the customers came back into the store to purchase – in this case lost sales is 4 TV’s.
5. What can you do to avoid a loss of turnover, or maintain as normal an operation as possible? For example, portable generator hire, overtime, outsourcing manufacture or extra advertising.
6. Maintain and keep full documentation, for example detailed diaries of all staff movements.
7. Get the loss adjuster’s detailed calculation to ensure you are receiving a fair settlement.
If you have any questions, please give me a call on 027 268 8081 or email andrew@claimsettlement.co.nz
The Claims Settlement Company prepares claims for companies that have experienced an interuption to their business. We work with brokers and insurers to make sure your best interests are being met and you receive fair compensation.
