Most of organizations focus on physical protection of properties and lack of adequate attention on the consequent loss from the property damage or do not fully aware of available insurance protection for this risk. Other firms are ware of cover of this type of insurance but have inconvenient feeling that business interruption insurance is not efficient due to complexity of claim assessment.
Imagining a plant with all machines & equipment of production lines installed in one large building (even office is also built-in) suffering fire damage, the loss can be building burnt and collapsed in major parts or total, and together with machinery & equipment, stocks of all types completely gone. In this circumstance, to rebuild the building and resume business result as right before the loss happened, organization has to:
- Waiting for authority to release the site (for fire loss, normally police will close the site for investigation)
- Coordinate with loss surveyor in loss survey
- Removal of debris
- Structure assessment and method of re-construction
- Tender to choose contractor
- Apply for constructioin permission
- Revise of re-construction method to meet updated law requirement
- Carry out construction works and handover
- Import and install machinery and equipment
- Import material and operate
- Marketing plan and activities to resume business result
With the above briefing steps, organization can estimate how many days are required to bring the business back to normal as right before the loss happened and how much the loss of profit within this recovery period.
In the broker role, we coordinate with organization in analyzing risks and risk reduction if loss happened, work out the insurance program based on deep understanding of organization’s business and widest cover in the insurance market