Late on a Friday afternoon a broker sent EPUL an unusual property investors enquiry. The case had been declined by the holding insurer the day before renewal due to non-disclosure of previous business liquidations.
The range of industrial units, one occupied by a tyre and exhaust fitter and MOT/servicing centre, was insured for £1m, and with an outstanding £5,000 impact claim awaiting recovery.
The underwriting process uncovered that in fact the insured owned multiple companies and the liquidations were in fact voluntary closings of old businesses and did not involve leaving any debt.
Exactly on the hour EPUL provided a competitive “Solutions” quotation including embedded equipment breakdown, cyber and legal expenses cover. This was immediately accepted by the broker, cover bound, and documentation issued.
As part of the product offering EPUL instructed a building reinstatement valuation from rebuild cost assessment. This was returned within 6 days and indicated that the property was in fact 50% under-insured. The report also highlighted that the building could take up to 17 months to reinstate, 5 months longer than the original 12 month indemnity period chosen by the Insured.
Again, the broker immediately instructed EPUL to increase the building sum insured to the appropriate level which under the terms of the “Solutions” policy waives the average condition. The indemnity period was also increased to 18 months.
Our “Solution” provided the Insured with broad cover whilst simultaneously avoiding underinsurance issues that would have had significant consequences in the event of a claim. The broker retained a satisfied customer, increased their commission by 50% and avoided a potential E&O exposure. A genuine win-win outcome.