Interesting subject this one. Business Interruption Insurance (BI) in particular. Having this is proving to be a double-edged sword. I have to prove to my Insurance company that we are planning to stay in business, which is no mean feat. BUT all the turnover I make is deducted from the amount I get, so despite having to pay other printers for the use of their machines and labour and the work being done at more or less cost price, I have turnover. I have also found that the paper work for BI is a nightmare, it is almost a full accounting audit! I was asked to find a phone invoice for November 2009 – ha ha – pity I have no access to the building at the moment! I recommend that every company in the country has a really good look at their policies. Aside from the minor detail that the insurance company has now cancelled our BI from December, as our “business is not operating” ??? I have turnover, so therefore I am operating!
One comment I would make is that if you have loss of rentals in your policy, make sure it’s for 2 years, not 6 months or 1 year, (as in our case) as this is not long enough, especially if they lock you out like they have in Christchurch.
Also, for the Building material damages policy we are on our, I think, 4th insurance assessor. In order we have had: 1 x Australian, 1 x South African, 1 x American ( who incidentally said that this was as big a shambles, administration-wise as Hurricane Katrina) and at the moment we have a gentleman from the UK. This last one is the only one who has managed to get us some money after we have waited 6 months, and has managed to sort the files out. Which were all intermingled. What happens is, the assessors get seconded for 3 months and you just get them up to speed with the files and… they are gone. There is no logic in this.
One other issue we’ve come across is this: make sure that in your policy that you have a correct estimate for the cost of demolition. This is also proving to be an issue, as for some building owners the costs of the demolition has sky rocketed, and the insurance cover has not keep up with reality.