It is therefore critical to know what cover you have, and to be able to make a claim as soon as possible.
In this regard, the starting point is to locate your insurance policy and review its terms. Contact your broker or insurer to request a full copy. It is important to review the document and discuss with your insurer or broker the terms of your policy, your eligibility to make a claim, and the information required to support your claim.
Many business policies may include a provision for claims for loss of trading profits in addition to the general claims for property, equipment, stock and fixtures.
A claim for any loss should be submitted to the insurer for their consideration, regardless of whether you believe your policy does or does not cover you for the loss you have sustained. It is for the insurance company to review and respond to claims submissions if cover is afforded under the policy.
In the meantime, you should act prudently by:
- Assessing and minimising any damage. Is the damage likely to get worse.
- Initiate your business continuity/loss mitigation plan (ie. working from home, or relocate services to another part of your building or another building entirely).
- Keep all receipts for repairs or replacement.
- Take as many photos as possible.
- Documenting income losses you are you likely to suffer on a weekly basis until repairs are complete?
- Documenting any consequential loss suffered as a result of flooded counterparties to the business (suppliers or customers) which may also be covered under the Business Interruption section.
Certain clauses under the industrial Special Risks policy may also cover claim preparation fees. Grant Thornton can assist you to manage through this disaster and support you in responding to the challenge and addressing the critical factors outlined above.