01 Sep Catastrophic power surge to office block
Catastrophic power surge to office block
Case studies highlight the need for specific types of insurance policies. Together with Vero Insurance, we have highlighted one such claim related to a power surge.
An electrical arc developed in the vertical busbar which traveled 8 floors of a 30 storey building. The resultant damage necessitated the replacement of the electrical wiring in all 30 floors the building. Due to the age of the building, building codes required the replacement wiring to be of the current standard, necessitating a change from aluminium to copper. Code also required replacement to current standard (“open” to fully enclosed), which also meant bigger holes in floor slabs on every floor.
In the time it took to complete the work the tenants of the building had to find alternate accommodation, resulting in a significant loss of rental profit for the insured.
Settlement amount $16,500,000 (including business interruption)
How can I find out more?
If you manage a building, you can probably relate to the above case study, even on a smaller scale. Please contact our Strata department to discuss cover for Equipment and Machinery Breakdown Insurance.
For specific Equipment and Machinery valuations, you may contact our recommended Valuers via this link here.
Click here to access our Machinery Breakdown Questionnaire which may assist you in your AGM’s.
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