Is the Indemnity Period long enough
In the claims we are handling we are seeing more and more that the Indemnity Period runs out before the business returns to normal.
This is due to a number of issues including but not limited to:
- Inordinate delays by local councils granting approvals. Often for the most ridiculous of reasons. This is magnified making it hundreds of times worse when a natural catastrophe hits. In some cases, I have seen it taking 5 years to get approvals.
- The shortage of builders and building materials.
- The claim process itself is just taking longer and longer and I welcome the ASIC enquiry into claims handing as the financial and mental pressure this puts on insureds is not being appreciated enough by some loss adjusters and forensic accountants.
The final point has promoted LMI to include in our service a clinical psychologist to assist clients during the process. Click herefor more details.
With this background and as a follow up to yesterday’s post on the need for a review of sub-limits, I do urge everyone to carefully consider the length of the Indemnity Period on client’s policies.
A good way to determine a realistic Indmenity Period is to run through a risk analysis as part of a business continuity mangement plan. That is why we developed LMI ContinuityCoach. If you would like to learn more about this service, please email Michael@lmigroup.com
