Increased cost of working can bite you if you are not careful!

Have you ever thought about the costs involved in keeping your business going after/during a loss? Would you have to rent new premises if you had a fire, do you need more storage and has the cost of “doing business” increased? What about if you lost power for an extended period of time? How much would it cost to rent/buy and run a generator?

These type of questions all refer to a term called “Increased Cost of Working.” This is a sublimit within your contract of insurance that you need to ensure is sufficient for your business!

“Increased costs may be incurred by an Insured in trying to maintain turnover following an insured loss. Such costs, with certain limits can be insured under a Business Interruption Policy. “

LMI Group Insurance Glossary

The OzKleen claim that we have been covering is a perfect example of why you need sufficient “Increase Cost of Working” cover! The double story administration office, attached to the warehouse, was affected by the fire. With the damage rendering it unavailable for their staff to occupy.

After some brainstorming, the solution was quickly found in purchasing portable offices, usually used as site offices on construction sites, and placing them on premises. Because of this, work quickly resumed and will also continue until the old office space is reinstated. The purchase of the portable offices, covered by their insurance policy. This was advised by ProInsure at the time of taking out the contract. Without this action, business operations may have had to have been further hampered. Whilst this is not a perfect solution, it is another step in the right direction toward reinstatement.

Talk to your broker today about your business’ “Increased Cost of Working” cover today! It may save your business!

How we can help with fire damage:

If you or one of your clients has suffered a loss, please call our claims on the number below.

Fire Affected Offices vs Temporary Offices.