The situation
A manufacturer with a plant and an open yard in an industrial area had renewed its fire and allied perils policy on the same figures for years, adding machines without telling anyone. After a shamal stripped roof sheeting from a neighbouring site, the owner asked us to check his own position before the same thing happened to him. The sums insured rested on old costs while the policy settles on reinstatement, which brings the average condition into play and cuts every claim in the same proportion. Goods stored in the open yard were excluded from storm damage outright.
What we did
We had the buildings, plant and stock valued on a reinstatement basis and rewrote the schedule item by item, with a declaration condition so growth during the year does not recreate the shortfall. Storm and sand damage to goods in the open was quoted as a separate item with its own limit, and the roof fixings were surveyed because insurers were pricing that exposure. A machinery breakdown section was added for the presses, with the business interruption indemnity period set against the lead time for imported spare parts rather than an arbitrary figure.
- Sector
- Manufacturing
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