Background
Sewage Contractor – Water Utilities – £50M turnover
Challenge
The client faced a potential loss of income if one or more of their vehicles were out of action as they were wholly dependent on them for their income. The client’s tankers were also hand-built to order, with a lengthy build time. The challenge therefore was to persuade insurers to provide Gross Profit (GP) cover including vehicles under their Business Interruption policy, which is usually excluded as standard.
Solution
Initially, the client rented a yard with portacabins with Increased Cost of Working (ICOW) cover for losses at their premises. We asked the insurers’ assessor to meet us at the premises to survey the yard and calculated a GP amount in the event of a catastrophe where the whole yard was damaged or destroyed, including all of the vehicles. In addition to this we added £500,000 worth of cover for any vehicles damaged whilst on the road or being driven, which equated to roughly two tankers. Later when the client bought their own premises with eight acres of land, we provided full GP cover, including cover for vehicles and maintained the ‘whilst being driven’ clause on the policy.
Outcome
We provided the client with absolute peace of mind that their GP would be protected in the event of a catastrophe at the premises or if a tanker was written off whilst in transit. Brokers who do not have exposure to large fleet clients, would not know it is possible to cover this. Indeed, when we took this client on there was no cover for this in place, leaving them exposed to extensive losses.
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