Businesses and enterprises that operate beyond a typical small business have highly valuable assets, including specialised equipment and/or operationally critical buildings, which are exposed to risks unique to their nature, location, and structure.

Due to the size and complexity of these companies, these risks can result in crippling financial losses that have a large impact on a significant amount of people and, in some cases, subsidiary companies.

Unfortunately, many business owners and property managers underestimate the knock-on effects of a severe loss, and often falsely believe their existing policy has the capacity to adequately protect their financial position.

In most cases, ISR cover will involve any combination of large buildings, industrial-scale machinery, and large volumes of stock. ISR policies are generally broken down into two sections of cover, and our recommendation is to always cover both sections accurately & adequately.

Section 1 – Material Damage: This covers the cost to replace and rectify the impact resulting from loss or physical damage to the insured assets.

Section 2 – Business Interruption: This protects your revenue stream from consequential loss resulting from loss or damage to physical assets, prevention of access, and other causes of interruption.

Together, and with a range of sub-limits and covers, Sections 1 & 2 will form a policy’s Limit of Liability. This is the maximum that an insurer will pay in the event of a claim and, without careful consideration, can be dangerously underinsured.

Subject to the nature of a business, there are many covers and limits that are often overlooked when under Section 1 & Section 2, which can ultimately negatively affect the Limit of Liability.

Flood Cover

Property damage caused specifically by flooding is often an optional cover and not automatically included. Some policies will include a capped limit (e.g. $500,000), leaving a shortfall that could leave you exposed to serious financial loss.

Removal of Debris

This is particularly critical to building owners but applies to tenants as well. The cost of removing unusable debris after a major loss, such as a fire, can be a massive and unexpected expense. This is one of the most underestimated and overlooked considerations on many insurance policies, and having inadequate coverage can result in significant expenses.

Additional Increased Cost of Working

If you suffer loss from an insured event, this provides cover for certain costs incurred to avoid or diminish a reduction in trading and/or maintaining normal business operations and services. For example, this could be used to hiring a portable cold room to keep stock from spoiling, hiring extra personnel, or hiring a generator to maintain power.

Claims Preparation Costs

This is an important inclusion for any business insurance packages, but especially an ISR policy. This is designed to cover the costs of independent professionals who assist in generating the best outcome after a loss. This is extremely valuable following a large and complex claim, as these costs often run into hundreds of thousands of dollars.

Our Advisers are insurance representatives who are authorised to give personal advice on complex commercial and industrial operations. We manage your unique situation by accessing multiple products from multiple insurers.

Our service to you continues long after your policy is created. We conduct annual policy reviews to ensure your coverage reflects the changing nature of your business, and process changes as you need them in a timely manner.

In addition to this, we manage any claims that arise on your behalf, meaning that you deal with us, instead of the insurer. We represent you and our goal is to assist you in getting the best possible outcome if a claim occurs.