IMPORTANT - Please note: The Case Studies below are fictional cases which we hope will illustrate some scenarios which may help you to understand the range of insurance advice and insurance products that we can assist you with.
They are presented in a simplified format which does not include the full range of information that we would consider essential prior to any actual recommendations. Please be aware that rarely are two client’s needs identical, and we take care to understand fully your circumstances before any advice is offered.
Warning: You should not assume that any of the scenarios below will be appropriate for you, even if they sound identical to your own situation. Please contact us to discuss your insurance needs.
Case Study – Business Insurance Package Scenario
Tim and Debbie have a retail shoe shop. They are tenants in a suburban shopping centre. It would cost them about $100,000 to completely fit out the shop with new glass shelves, stock racks, counters and ancillary equipment such as cash register, fridge, furniture, stationery, etc. The cost of their usual stock holding to them is $150,000. They don't believe that burglars would be capable of stealing more than $10,000 of their stock due to its weight and bulk. They bank their cash and cheques every day, leave a float of $500 in the register overnight, and take the rest of the cash home each night. In their lease the landlord requires them to have $10 million Public Liability and to insure the landlord's plate glass at the premises. They have a neon sign outside their shop for which they paid $2500. They usually get their stock delivered from Australian suppliers, but they often pick up stock from a local warehouse and bring it to the shop in their car.
Their Business Insurance Package has the following recommended cover –
Fire and Defined Events/Accidental Damage
Contents - $100,000 Stock - $150,000
Accidental Damage – $25,000 Removal of Debris - $15,000
Gross Profit - $268,000, allowing for a 10% increase over last year
Indemnity Period -18 months
Additional Extra Costs of Working - $30,000
Claim preparation costs - $50,000
Contents - $5,000 Stock - $10,000
Business premises, business hours - $3,000 In Transit - $3,000
Business premises, after hours - $500 At residence - $3,000
External & Internal Glass – full replacement value Sign - $2500
Public & Products Liability - $10,000,000
$10,000 goods in transit