Some issues here for members to think about:-
1) Can we extend the policy to include the contingency of theft? Theft of essential equipment/component in a production facility can cause a shortfall in output until repair/replacement is carried out and output is back to normal.
2) Can we include 'loss of attraction' extension? The incident at Low Yat Plaza can cause shops, not damaged, to lose business because many shoppers stayed away due to safety concerns. The policy will respond to cover loss of business if extended to include 'denial of access' but will not cover loss due to 'loss of attraction' unless this extension is included.
3) Suppliers' Extension - The Fire Tariff in Malaysia allows extension to cover suppliers in Malaysia, Singapore and Brunei. With trading being done all over the world, this limitation is not helping to meet the insurance needs of a lot of trading companies and manufacturers who may suffer losses if suppliers are hit by incidents preventing them from supplying to their customers raw materials and finished goods. The turnover of the trading companies and manufacturers will be affected until new suppliers can be found.
4) A factory is down after a fire damaged machinery and stock. A nearby building has been leased on a temporary basis to commence production. The indemnity period on the policy is 18 months. The owner of the building being leased to the insured would only sign a lease for 2 years. Would the insurer pay the rent for the full 2 years as 'increase in cost of working'?
Let us share some views.
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