Keeping with the theme of a drycleaning business used elsewhere in this site, we will look at a fictional company, Australasian Dry Cleaners. Information that is relevant to our purpose is set out below.
Company founded and commenced operation in January 2004.
The policy under which the claim is being considered, was taken out from 31 December 2006 (this is the inception date of the policy).
A fire starts in an industrial clothes dryer on 1 April 2007.
The fire is quickly bought under control. The only damage, other than cleaning down the walls etc, is the dryer itself which is irreparable.
To minimise the disruption to the business, a new dryer is air freighted from the overseas manufacturer of the equipment, at a cost of $5,000 over and above the sea freight cost.
The initiative of air freighting the new dryer is estimated to have saved $30,000 in Turnover that would otherwise have been lost.
The owner uses the services of a Loss Manager/Claims Preparer to calculate and present their loss. This cost $3,400.
One casual staff member was stood-down for the period of the disruption, with a saving of $555.