BACKGROUND TO OUR CLAIMANT
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.