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Frequently Asked Questions

The Policy Schedule


Can a client over insure and ‘cash in’ or ‘profit’ in the event of a claim or are financials considered?

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No. Insurance is not designed for a client to profit from a claim. The principle is one of indemnity i.e. put the client back in the position they were in had the loss not occurred. The cover pays for the ongoing fixed costs of the business plus any net profit.

Can you tell us why it matters if a business is a sole trader, or a company, or trust? Does that make a difference? What’s the impact of multiple entities?

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You need to set the Policy up correctly up front i.e. the correct entities and names need to be stated on the Policy Schedule. Getting this right ensures the entities which the client wants to cover are covered. This really becomes important in the event of a claim. There are times when clients have multiple companies but do to consolidate them into one entity. Rolling the data up in a logical format can be crucial to getting the Declared Values right. Sometimes it may assist in understanding upstream or downstream interdependencies.

Generally an ISR wording define the Premises as wherever the insured conducts business. Why should we restrict the cover by stipulating Premises on the Policy Schedule?

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Section 1 refers to “at the Situation” and Section 2 “at the Premises”. Therefore it follows that the claim must follow the Policy Schedule on the premises or situations listed.

It is better to be clear in your disclosures on the Policy Schedule to avoid any potential issues in the future.

Multiple entities with separate financials Each named insured under a policy Are there separate claims for say the property owner (I.e. a trust or super fund) and the business loss – are they treated as separate claims or one claim under the policy?

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That depends on the circumstances and the interdependencies. The Policy allows us to present claims at departmental level i.e. each entity with separate financial data.

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