CASE STUDIES
Business Interruption Analysis at an interdependent multi-operation chemical facility - Singapore: This site included significant operating entities with multiple interdependencies. The site also included operations that were not owned by the insured entity but which the insured entity was responsible for maintenance thereof. Analysis had to be completed to determine the level of interdependence and the level of loss from each operation when a loss scenario occurred at a specific operation. The analysis also included a review of the policy coverage to ensure that if an event did occur the policy would respond. The analysis uncovered that coverage was in place for a take or pay contract that was fully mitigated in the event of a loss. As such the insured was paying for cover on a take or pay contract of over $500m when it was not necessary. This as well as other recommendations for levels of cover and policy wording were provided to and implemented by the insured.

Business Interruption Analysis for a property developer /manager- Australia: This analysis was geared towards a review of the level of Additional Increased Cost of Working required. As the insured did not own 100% of the asset the other investors wanted assurance that in case of a loss that no amounts would be at risk. The review noted that several expenses included as uninsured working expenses would be at risk in the case of a loss. That is the property owners would be responsible for these expenses during the recovery period in the event of a loss. The analysis noted that dependent on the final policy wording some of these expenses should be insured as Increased Cost of Working and some as Additional Increased Cost of Working. The final report noted that changes to the wording needed to be completed in order for the appropriate expenses to be claimed. The report further noted appropriate classification of expenses as uninsured working expenses needed to be made to the insurer. The insured and their broker worked with the insurer to adjust the policy wording and to increase the appropriate level of cover for Additional Increased Costs of Working from $10m to $50m. It should be noted that 2 years following this review a new location was added to the portfolio that required the Additional Increased Costs of Working to be increased to $120m. Based on the Business Interruption Analysis’s computations and report narrative completed for the previous property the insurer accepted the increase in Additional Increased Costs of Working for the current property at $120m.