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Tag: Claims management

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Business Claims Insurance Insurance Insights

We Helped a Client Recover More Than Just a Vehicle 

Landscaping work vehicle under repair after fuel damage, representing business insurance claim and downtime support

One of our landscaping clients faced a costly setback when the incorrect fuel was accidentally added to their work vehicle, causing significant damage.

With the vehicle off the road, their ability to operate and generate income was immediately affected.

At first, the insurer approved the claim. However, four weeks after lodgement with no additional information provided, the insurer reversed their decision.

They advised that they misread the policy and that the claim, including both repairs and downtime would not be covered.

This sudden change left our client feeling confused and under pressure. The business had already been disrupted and the claim outcome had shifted. 


Our role as your insurance claim support 

This is where our team stepped in to provide them with insurance claim support.

Our insurance claim support team reviewed the situation and challenged the insurer’s decision. We highlighted a few key points: 

  • The client had been open and honest from the start
  • The insurer had already indicated the claim would be covered
  • The delay in changing the decision put the client at a disadvantage 

The insurer finally agreed to cover the repair. However, they still declined the downtime insurance claim.

We didn’t stop there. Given that downtime cover had been clearly discussed earlier with the insurer, we continued to push the matter further.

We escalated the case to a Dispute Resolution Officer. We also continued negotiations over several months to seek a fair outcome. 

Landscaping work vehicle under repair after fuel damage, representing business insurance claim and downtime support

The outcome

After persistent follow-up and strong advocacy from our insurance claim support team, the insurer agreed to cover both the repair and the downtime claim.

This result made a real difference to our client. It helped them recover financially and get their business moving again. 

Key takeaways:


Insurance claims do not always go smoothly. Decisions can change, and the process can feel overwhelming.

This is where having a broker can make a real difference.

Without insurance claim support, many business owners do not have the time or energy to challenge claim decisions or navigate disputes. Some may even accept an outcome that is not fair.

When you work with a broker, we handle the claim process for you. We advocate on your behalf as your insurance claim support and deal with the insurer directly.

You can focus on your business, knowing you have someone in your corner when it matters most. Learn more about our claim services. here.

Claims contact information

1800 809 132 (choose option 1 for claims)
cl****@**********om.au

Categories
Business Claims Insurance Insurance Insights

When One Accident Put a Business on Pause, We Helped Get It Back on Track

Small business insurance claim support after vehicle breakdown

For small business owners, work is more than just work. It is your livelihood. So when something unexpected stops you from working, the stress can be huge. This is where strong insurance claims support makes a real difference.

One of our clients in the commercial cleaning industry experienced this when their work vehicle was damaged in an accident. With jobs booked and bills to pay, being off the road was not just inconvenient. It caused real financial pressure.

The client had a Downtime benefit in their insurance policy, also known as business downtime insurance. This benefit is designed to provide income support while a vehicle is being repaired. After the breakdown, the client lodged a claim and received a repair quote that was below their insurance excess. They decided to pay for the repair privately to avoid the excess.

Partway through the repair, the mechanic found more damage. The new quote was now higher than the insurance excess. Because of this, the client chose to have the repair covered by insurance instead.

The insurer approved the repair costs. However, they declined the Downtime benefit. They relied on a policy exclusion because the first repairs had been done privately.

Our role

Our claims team stepped in to provide dedicated insurance claims support during this stressful time. We reviewed the situation and challenged the insurer’s decision. We explained that:

  • Any reasonable person would have made the same choice
  • The client acted in good faith and did not try to mislead
  • The insurer suffered no additional financial loss from the client going ahead with repairs

We kept the client informed at every step. We reassured them and handled the discussions with the insurer so they could focus on running their business. This is an example of strong insurance broker claims advocacy in action.

Small business owner affected by vehicle breakdown during insurance claim

The outcome

Because of our team’s experience and persistence, the insurer agreed to pay the maximum Downtime benefit under the client’s business downtime insurance. The client received the income support they needed during a difficult period. This reduced financial pressure and helped them return to work with confidence.

Key takeaways:

This claim shows why working with an insurance broker matters:

  • Policy wording is not always final, and insurers must follow a fair claims process
  • Experienced claims support can challenge insurer decisions
  • Brokers provide insurance broker claims advocacy in complex situations
  • You don’t have to navigate claims alone

Insurance is about being there when it counts and we’re proud to stand beside our clients when they need it most.

Claims contact information

1800 809 132 (choose option 1 for claims)
cl****@**********om.au

Categories
Business Insurance

Commercial Property Insurance: Why Purchase Price Doesn’t Equal Sum Insured

When arranging insurance for a commercial property, many owners make a common mistake: using the purchase price as the sum insured.

On the surface, it feels logical. If that’s what you paid for the property, surely that’s what it’s worth? However, the purchase price doesn’t always reflect the actual cost of rebuilding.

Purchase Price vs. Rebuild Value

It’s important to understand the difference between the purchase price and rebuild value when it comes time to insuring your property. Yes, both relate to what your property is worth, but they represent and serve very different things.

Purchase Price

The purchase price of a property represents the total amount paid to acquire it on the market. It’s affected by several factors, which include:

  • The value of the land.
  • The property’s location and market demand.
  • Broader economic conditions at the time of purchase.

None of these is relevant to an insurer if your building is damaged or destroyed. Insurance is about replacing the structure itself, not the land it sits on.

Rebuild Value

The sum insured is generally expected to reflect the full replacement value of the building, which includes:

  • Demolition and debris removal.
  • Professional fees (engineers, architects, surveyors).
  • Current labour and material costs.
  • Compliance upgrades (to meet today’s building codes).

What’s the difference?

The key difference between purchase price and rebuild value lies in what each represents. The purchase price reflects the property’s market value, including the land, location, and broader economic factors, while the rebuild value focuses solely on the cost to reconstruct the building if it were damaged or destroyed. This includes demolition, debris removal, professional fees, materials, labour, and any upgrades needed to meet current building codes. In short, insurance covers the cost to rebuild, not the market price you paid.

The cost of getting it wrong

If your sum insured is based on the purchase price rather than a professional valuation, you risk being underinsured. And underinsurance doesn’t just affect you in the event of a total loss. It can also reduce your payout even in the case of a partial claim. For example:

  • A property was purchased for $2 million, but the actual rebuild cost is $3 million
  • The sum insured is set at $2 million (instead of $3 million).
  • A fire causes $600,000 worth of damage
  • Because the building was underinsured by one-third, the insurer may pay only two-thirds of the claim (about $400,000)

This could leave you, the owner, with $200,000 out of pocket expenses even though the damage wasn’t a total loss.

professional property valuations matter to help you determine the right cost to insure your property for

Why professional property valuations matter

Construction costs in Australia have surged in recent years, driven by shortages of materials and skilled labour. Without a proper valuation, it’s easy to underestimate the cost of rebuilding today compared to when you purchased the property. A professional building valuation gives you:

  • Confidence that your sums insured are accurate
  • Protection from co-insurance penalties
  • Peace of mind that your biggest asset is covered correctly

It’s best to arrange a professional building valuation every few years and review your insurance sums annually. That way, your cover keeps pace with any changes to your property, as well as rising rebuild costs and inflation.

Avoid underinsurance with proper valuation

The purchase price reflects market conditions, not rebuilding costs. Having a commercial property is already a significant investment, and underinsurance can create unexpected financial strain during claims. To safeguard your investment, arrange a professional building valuation and review it regularly. That way, your insurance truly reflects today’s replacement costs, not yesterday’s market value.

When it comes to protecting your assets and ensuring the sums are properly accounted for, a Broker would be a huge help. If you want advice or are interested in learning about available options for commercial property coverage, reach out to East West Insurance Brokers today.