Access vital support at the time of a major loss

When your business has its home within a commercial building, everything on the surface can seem peaceful, until an unanticipated event emerges. Statistically, the number-one unanticipated event is an escape of water (EOW).[1]

An EOW can result in an expensive loss, even if its origin is a seemingly innocuous leak. Many commercial properties include significant water features from large heating systems to air conditioning units, toilet facilities, water coolers, even coffee machines.

A plumbing installation is one source of issues, when and if contractors do not carry out work proficiently and with quality materials. A toilet or kitchen leak on one floor of a multi-storey building can find its way into floors beneath. Water build- up can also accumulate in voids within bathrooms and kitchens, resulting in a large water volume release.

Other water damage in commercial buildings can emerge from blocked drains or through river, sea or totally random flash flooding.

The other major commercial property risk is fire, which can result not just in significant but total loss. There are around 2,600-2,700 commercial fires per quarter, in England alone[2], and the average cost of a commercial fire is £65,000.[3] Fire risk is indisputably a major threat to businesses and their continuity.

With such property claims always being a possibility, some businesses secure peace of mind through a Loss Recovery insurance policy. If they then have a claim of, typically, over £5,000 in value, they have someone on their side, looking to secure the rightful insurance settlement for losses incurred, whilst minimising trading impacts.

During the pandemic, this cover was invaluable for one Lorega-insured business. When an electrical fault triggered a major fire that devastated their Norfolk superstore, things looked bleak for the local community, particularly the vulnerable and elderly customers who are reliant on the area’s only store.

Despite a loss of over £3 million, a Loss Recovery insurance policy allowed the policyholder to have the immediate, on- site and dedicated support of a Chartered Loss Adjuster.

From day one, the loss adjuster’s suggestions mitigated the loss, secured the future of a valuable community service and kept staff employed. With their help and intuitive advice, a fully stocked temporary structure was erected within six weeks, allowing trading to resume, reducing business interruption impacts. It also prevented a loss of custom to various pop-up shops that sprang up, trying to capitalise on the store’s situation.

The loss’s size saw twenty stakeholders involved in the claim, but the whole process was still managed smoothly, ensuring the insured did not need to divert attention from the reopening process.

Finally, the superstore was fully rebuilt, enjoying a successful relaunch in early 2023. As the policyholder says: “Our dedicated Chartered Loss Adjuster was a godsend and fantastic from day one. We kept our multimillion-pound business up and running, knowing the claim was in safe hands.”[4]

Could you benefit from similar support, following a leak, flood, storm damage, fire or other impact? Get in touch to talk it through.

Sources:

[1] https://www.pallmallestates.co.uk/latest-commercial-property-news/the-most-common-uk-commercial-property-insurance-claims-revealed/

[2] Home Office Fire and Rescue Incident statistics Year ending September 2023, fire-statistics-data-tables-fire0306-250124

[3] https://www.intelligentsecurity.org/fire-prevention/UK-fire-statistics/

[4] Lorega case study