When a claim appears straightforward, it does not always mean the outcome will be. This case demonstrates the importance of experience, policy knowledge and taking the time to look beyond the obvious, particularly when it means a client who was expecting the worst, receives the best outcome from their claim.
Loss of construction equipment
A construction business contacted us following the theft of a high value item of plant equipment from inside a locked garage at their premises. The stolen item was a robotic total station; a sophisticated piece of surveying equipment commonly used across construction projects.
This type of equipment plays a critical role in modern construction projects, allowing for precise measurement, site layout and data capture. It improves accuracy, efficiency and productivity on site and is often integral to keeping projects on schedule. Due to its advanced technology and portability, it is also a highly attractive target for theft and can be costly to replace.
The equipment represented a significant investment for the business, and its loss had the potential to disrupt ongoing work, potentially leading to further losses.
Initial challenge of declaration
At first glance, this claim presented a significant issue. The stolen item had not been specified on the client’s policy schedule at the time of the loss. As a result, it initially appeared that the equipment was uninsured.
Following notification of the claim, the insurer declined it in full. From an underwriting perspective, this decision was understandable, particularly as the item had not been declared when the policy was originally arranged.
The client had been kept informed throughout the process and, importantly, had a clear and honest relationship with their Client Executive. They understood why the claim had been declined and had already anticipated that outcome, recognising that the equipment had not been disclosed at inception.
Using initiative and policy knowledge
Although the claim had been declined, our Claims Team wanted to review the policy documentation in greater detail rather than simply accepting the initial outcome at face value.
During this review, a key endorsement was identified. This endorsement confirmed that specified plant only needed to be declared at the start of the policy or at renewal. As the equipment was purchased during the policy period and the policy had not yet reached its first renewal date, the endorsement meant that the equipment should still be covered, despite not appearing on the schedule at the time of the loss.
This was not something that would ordinarily be picked up during a standard claims process as reviewing endorsements in this level of detail is not always part of routine protocol once a claim has been declined. However, by taking a step back and re-examining the wording, our team was able to successfully challenge the insurer’s decision.
Claim outcome
Following further discussions, insurers agreed to honour the claim.
While a policy excess still applied, the client ultimately received a settlement that represented the majority of the equipment’s value. Given the client had already accepted the loss as uninsured, the reversal of the decision came as a significant and welcome outcome and reinforced the value of having an experienced claims team acting on their behalf.
The turnaround from initial notification to settlement was approximately two months, including the Christmas period. Given the complexity of the claim, the additional review required and seasonal delays due to Christmas, this reflected a positive and efficient turnaround.
Following the settlement of the claim, the client reflected on their experience of the claims process and the support they received throughout, and commented: “The customer service was exceptional from start to finish with our theft of goods due to the outstanding attention to detail they successfully delivered a claim.”
Importance of prompt claims notification
While this case had a positive outcome, it also highlights how important early and complete claims notification can be. In this instance, some time was needed for the client to gather and assess the relevant documentation, which did mean the claim took slightly longer to reach settlement.
Prompt First Notification of Loss allows us to:
- Assess cover quickly
- Identify potential policy issues early
- Engage with insurers without unnecessary delay
- Work proactively towards a faster settlement
We have explored this in more detail in our The Importance Of Notifying Your Insurance Claim Promptly blog, which explains how early engagement can significantly improve both the speed and outcome of a claim.
A strong claims result
This case is a clear example of how claims advocacy goes beyond processing paperwork. It demonstrates the value of our in-house Claims Team’s experience, attention to detail and the willingness to challenge decisions where policy cover allows, in the best interest of our clients.
For our construction client, what initially appeared to be a total loss turned into a successful settlement. For us, it reinforces why taking the time to fully understand a policy, including its endorsements, can make a critical difference when it matters most.
