Case Study

Property & Business Interruption

Case Study 1

Client Industry: Corrugated Box Production and Sheet Board

Annual Turnover: £16m with approximately 90 employees

Client Requirement

  • The Client had inherited a Sprinkler system which had been developed in a hybrid manner and was uncertain of its technical capabilities
  • The uncertainty of the protection provided by the sprinkler meant that the number of Insurers willing to offer cover for the Client was restricted
  • This resulted in a lack of options for the Client in terms of achieving premium reductions

UK & Global Solution

UK & Global facilitated the following:

  • An independent Hydraulics Analysis test was arranged
  • A financial contribution was made by the Insurer towards the cost of the Hydraulics Analysis test

Outcome & Benefit to the Client

  • The output of the Analysis Report resulted in greater clarity and understanding of the protection provided and options to enhance the Sprinkler system if required
  • This directly resulted in an increase of the number of quotations offered at the following renewal
  • A cost reduction of 15% was achieved in respect of the Property and Business Interruption premium and enhancements to the policy wording, with the inclusion of Machinery Breakdown cover, were agreed with the Insurer (Affiliated FM)

Case Study 2

Client Industry: Generation of Environmentally Friendly Biofuel

Annual Turnover: £3m-£4m

Client Requirement

  • The Client had created an Enzyme which would ultimately lead to the creation of a new type of Biofuel
  • As with every new “Green” product, there is an element of uncertainty over its development and use as the effects of the Biofuel may change over time which would only be established through trial and error
  • The Client’s Property & Business Interruption Insurer rated the Insurance for the Client’s Pilot Plant on a “Heavy Industry” basis due to the uncertainty / emerging nature of the product

UK & Global Solution

  • We arranged for regular meetings to take place with the Underwriter, the Client’s Directors and UK & Global attending to ensure that all parties were fully informed of the product development stages
  • UK & Global undertook its own Property Survey to ensure that full technical details of the product and processes were disclosed to the Underwriter in a full format
  • UK & Global asked the Client to provide full details of the product, including the complex chemical elements, which were provided to the Underwriter via a Non Disclosure Agreement to protect the Client’s Intellectual Property

Outcome & Benefit to the Client

  • The premium in respect of the Property & Business Interruption Insurance was reduced by 55% as the Underwriter was happy to re-rate the premium based on the detailed information provided by both the Client and UK & Global