Q&A: Who pays the Strata Insurance excess on a leaky pipe claim?
In the event of water damage due to a leaky pipe in a Strata property, who is responsible for paying the excess - the owner or the body corporate?
TV chef, Heston Blumenthal, shut the doors of his gourmet London restaurant after it was hit by an outbreak of the same vomiting virus which forced him to close the Fat Duck five years ago, according to the Herald Sun February 02, 2014.
We take a look at the potential insurance implications for restaurant owners and how business insurance could protect you.
Will my insurance program cover me?
As a restaurateur, there is always a chance that you will incur costs as a result of a patron falling ill from dining in your restaurant. If you have Business Insurance or Public and Product Liability Insurance your first question might be - will my insurance policies cover me?
The answer: It will, depending on the type of cover afforded by both policies and the circumstances surrounding the claim.
Which insurance policy will I be able to claim under?
In most circumstances a claim could be made under the Public and Products Liability section of your insurance policy.
The Public and Products Liability Insurance policy would be triggered as you have, or potentially have, a third party personal injury claim.
The claim may include damages for third party losses such a medical bills, loss of income due to inability to work and trauma.
It should be noted that policy holders must immediately notify their insurance provider if they know of circumstances that may lead to a possible claim. This is regardless of whether a formal claim has been submitted.
If I have to close my doors will my Business Insurance policy cover me?
In this instance, the answer is maybe. If, as in Heston Blumenthal’s case, you choose to shut your restaurant doors of your own volition then no, your Business Insurance policy will not respond.
If a government authority demands that you close your restaurant, then depending on the Business Insurance policy wording you may be covered for Loss of Income over this period.
If this example raises any concerns for you or your business, or you would like to review your restaurant’s insurance program, please contact Ben Bowen on 1300424627.
This Whitbread insight article is not intended to be advice and you should not rely on it as a substitute for any form of advice. Please contact Whitbread Associates Pty Ltd ABN 69 005 490 228 Licence Number: 229092 trading as Whitbread Insurance Brokers for further information or refer to our website.
From July 1, 2017, some residential Strata Insurance policies will experience significant total premium changes as a result of amendments to the Terrorism Insurance Act 2003 (Cth). The changes apply Australia wide, and relate to the introduction of a Terrorism Levy.
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