Spotlight: Loss Recovery Insurance

When many business owners find themselves needing to make a claim, especially a larger claim, the intricacies and complexities of insurance suddenly become that bit overwhelming. It doesn’t matter what size of business you have or how experienced you are, unless you’re dealing with insurance as part of your day-to-day job it can be difficult to keep track of what’s needed, and how you can make sure you receive the best possible settlement under the terms of your policy from your insurer.

Ordinarily, a Loss Adjuster is hired by the insurer to act as an impartial expert to settle a claim, and as the client, you wouldn’t necessarily see the output until later in the claims process. Once you receive it, there’s a possibility that it will contain ‘jargon-heavy’, technical language that can be difficult to understand even when you work in insurance.

The Loss Recovery Insurance service we’re able to offer, provided by Lorega, would equip you with your own Chartered Loss Adjuster early in the process, who can talk the same language with the insurer’s Loss Adjuster for you, and help deal with important issues as they arise.

The Bakery Fire

For example, we have a case study in which a bakery suffered a fire, caused by an electrical fault, at 4am. Due to the nature of the business, it was luckily noticed quickly and emergency services were called. The fire, combined with the thick smoke and the water from the fire service response meant there was extensive damage to storage, kitchen and food prep areas as well as the rented flat above the bakery.

The bakery had previously purchased Loss Recovery Insurance with Lorega as an add-on to their business insurance and the client’s Loss Adjuster was on site within 24 hours to assess the damage. The client’s Loss Adjuster agreed with the various parties involved to act as the main coordinator for all the claims arising from the incident.

Early on in the claims process, it emerged that the bakery had been underinsured but this was resolved quickly by the client’s Loss Adjuster who identified that the bakery had been over-insured in another area, and meant that the bakery didn’t lose out on receiving the full value of their claim. As part of the ongoing works being carried out to the bakery and the rented flat the Loss Adjusters agreed to all use the same contractors and remain aligned.

When a serious loss such as this occurs, one of the major concerns to the affected party is not only short term loss of income but potential long term loss of business. It can be incredibly difficult for businesses who have a serious, long term stoppage to start up again.

The bakery’s foot traffic was predominantly made up of people on their lunchbreak and there were a few different bakeries in the area; this meant the temporary loss of business could potentially result in the long-term loss of customers as people got into the habit of using a different bakery. To combat this, whilst the repairs were being carried out, the client’s Loss Adjuster helped the bakery arrange for a porta cabin to be set up on site to function as a shop front.

The Loss Adjuster also arranged for other bakeries in the bakery’s chain to produce extra in the mornings that the affected shop could sell from their temporary home in the meantime, meaning the bakery was trading again within 48 hours. By organising this early spend, the client’s Loss Adjuster saved the insurer money in respect of a ‘loss of profits’ claim, and helped to save the business by keeping it open in a time of crisis.

During the process of the rebuild, the business owner requested that the old flue ovens be replaced with new electric heat ventilation ovens which were more efficient and therefore cheaper to run. The Loss Adjuster negotiated with the insurer, who originally wanted to simply replace the equipment with ‘like-for-like’, and it was agreed to. The new kitchen was fitted out with more modern electric heat ventilation ovens, resulting in the kitchen being restored beyond the owner’s expectations.

Available Options

Obviously we all hope we never have to make a claim, but sometimes we’re unlucky, and sometimes an issue can arise during the claim process that you may not be best equipped to deal with. The above story is a true account of a case where our partners, Lorega were of significant help to a bakery who’d suffered a fire that caused a greater loss than ‘just’ a damaged kitchen.

Here at FSB Insurance Service, we want to help you get the best insurance package possible for your business, and have teamed up with Lorega to get the best prices possible on three key insurance plans to help you have the best claim experience possible.

Lorega 10

  • 10 hours phone advice from experienced Loss Adjuster for £10*
  • Help negotiating the claim
  • Technical advice over the phone for
    • Claim Repudiation
    • Policy warranties and exclusions
    • Adequacy of cover
    • Operation of an insured peril
    • Arranging tradesman/supplier quotes
    • Arranging Replacement Goods
    • Preparing the Claim
    • Damage mitigation

Lorega 25

*Unique product only available through FSB Insurance Service*

  • 25 hours phone advice from experienced Loss Adjuster for £25*
  • Help negotiating the claim
  • Technical advice over the phone for
    • Claim Repudiation
    • Policy warranties and exclusions
    • Adequacy of cover
    • Operation of an insured peril
    • Arranging tradesman/supplier quotes
    • Arranging Replacement Goods
    • Preparing the Claim
    • Damage mitigation

*Prices for Lorega 10 and Lorega 25 do not include Insurance Premium Tax.

Lorega Loss Recovery Insurance

This is Lorega’s core offering and the policy used by the bakery in the above example.

  • Insurance Policy pays for a Chartered Loss Adjuster to provide unlimited expert advice for any valid commercial property material damage or business interruption claim under the policy
  • Cost dependent on policy it’s attached to
  • Loss Adjuster will help to prepare, negotiate and settle the claim
  • Will always aim to get you the best possible settlement
  • 24/7 claims helpline
  • UK wide service with very fast response (even in remote areas), with an on-site visit within 24 business hours
  • Covers losses from £5k (no upper limit)
  • No hidden fees, and protects you against having to pay an hourly rate for help after the event
  • Minimise lifestyle disruption, helping you get back to running your business

Loss Recovery products exclude claims in respect of Personal Injury and Liability, Marine, Aviation, Motor, Personal Property (Commercial claims only), Subsidence, Landslip or Heave, Uninsured Losses, Civil Proceedings, Claims outside the UK.

Lorega Ltd. Registered in England Company Number: 01921934. Registered Office: 36 Leadenhall Street, London EC3A 1AT. Lorega Ltd is authorised and regulated by the Financial Conduct Authority No.308694 Lorega Solutions is an Appointed Representative of Lorega Ltd which is authorised and regulated by the Financial Conduct Authority.