Losses not covered despite several insurance policies...

The Insurance and Financial Savings Ombudsman has rejected a claim by an insured who had suffered consequential losses as a result of theft by an employee.

The insurer accepted the theft claim and paid out $25,000, but rejected the claim for consequential losses.

Under the consequential losses insurance policy a claim only arose if there was a claim under the general, statutory or employer liability policies.  It specifically excluded any consequential losses under the fidelity policy.  As the employee theft fell under the fidelity policy there was no valid claim to the consequential losses (loss of income due to the missing equipment and lost clients due to the thefts).

It pays to carefully consider the various policy wordings to see if you have brought what you thought you were paying for.

Leading law firms committed to helping clients cost-effectively will have a range of fixed-price Initial Consultations to suit most people’s needs in quickly learning what their options are.  At Rainey Collins we have an experienced team who can answer your questions and put you on the right track.