A successful $25 million storm damage claim at a BOC Brisbane gas facility shows the importance of ensuring adequate insurance is in place and having a professional team to assist in recovery efforts.
A severe hailstorm in 2014 had wreaked extensive damage to BOC’s hazardous goods-rated 7ha Rocklea site, including an administration complex, a direct distribution centre, and a regional distribution centre.
The premises were insured under an Allianz global policy purchased by BOC’s parent company, Linde Group, which covered property, stock and business interruption losses.
Key issues in managing the claim were:
- the hazardous-rated business operations of a major gas plant
- the presence of asbestos in the damaged buildings
- workplace health and safety concerns
- the potential business interruption loss for Queensland’s primary gas supplier and the flow-on effects, particularly for critical clients like hospitals and the mining industry.
Sound groundwork by the insurer, the broker and internal managers before policy inception ensured the policy covered all insurable contingencies.
“We had unchanged customer service levels throughout the entire process, which was critical for BOC,” said Rob Brittliff, BOC zone production manager, Queensland. In fact, most customers were unaware of the complexity of the claim or even the fact the company was temporarily in alternative premises and BOC was “very proud of that”.
Lessons learnt from the claims management process include the importance of ensuring adequate insurance is in place for large-scale losses from extreme weather events. The service providers individually had proven experience in their fields and collaborating resulted in an excellent outcome for all stakeholders.
A summary of the case study is published in the October edition of Insurance Adviser. ICPS Australia, project managers responsible for supervising all activity, has written a comprehensive case study of how the BOC Australia claim was managed. To obtain a copy, email ICPS business development manager Mike Quinlan at firstname.lastname@example.org.