A large national retail client with a store located with an airport experienced a fire outbreak in their kitchenette. The fire started in the back kitchenette and spread to the storeroom due to a faulty plastic kettle which quickly engulfed the area.
Luckily the business had a sprinkler system in place and the storeroom door was shut preventing the fire from damaging the store front. At the time of the event, the store was closed and fortunately no staff or customers were onsite.
The damage was to the extent of a six-figure claim but had the potential to be a lot more. Prompt engagement from the client to our Broker team through to our expert claims preparers ensured that the business suffered minimal interruption and expedited the granting of indemnity under the insurance policy.
What have we learnt?
The claim has two important components, the first being fire damage and the second being the water damage due to the sprinkler system. Uncontrolled fires cause significant damage, whereas fires controlled by sprinklers are generally less destructive even considering the water damage component. This demonstrates how important it is to have installed & operational fire sprinklers.
Where there is a fire in a leased property, there will generally be two claims – one for damage to owned property and one for liability being damage to leased property. In this case the leased property is within an airport.
- Have sprinklers installed.
- Regularly Test and tag electrical equipment
- In the event of a claim, quick notification to your insurance broker is key
- If damage is done to a leased property, you will likely have two insurance claims
- One incident could potentially have several claims. In addition to the above regarding leased property – if the store was open a staff member could have been injured leading to a Workers Compensation claim. This could also lead to a Worksafe investigation/prosecution and claim under the D&O policy too.
Our team of Insurance Brokers specialise in complex risk management. If you would like to talk to someone about the risks in your business or request a quote, please contact us today on (03) 9021 7700