11 November 2024 Riber Products Ltd is a family owned business, based in Clay Cross, Derbyshire. With over 40 years of combined experience in engineering and manufacturing, They specialise in producing high quality injection molded components to a wide range of industries.
A sudden fire broke out at Riber Products’ facility, causing extensive damage. The fire not only destroyed inventory but also critical assets essential to daily operations, leaving the business facing a major challenge. The road to recovery appeared daunting and intricate, with numerous obstacles to overcome before operations could resume as usual.
Major Loss stepped in to help guide Riber Products through the maze of managing a business interruption claim, with Martin Grindrod from the Major Loss team handling the claim. His role in the process involved working closely with Riber Products to assess the damage, communicate with insurers, and facilitate the resources needed for a swift and effective recovery.
Pictured from left to right: Daniel Hunter (Director, Riber Products), Martin Grindrod (Loss Assessor, Major Loss)
Navigating Recovery: Riber Products Reflects on Rebuilding after Severe Fire Damage
For Riber Products, the fire was more than just a physical setback. As a supplier of injection-molded products to a range of industries, they couldn’t afford to halt production for long. Yet, with significant damage to their facility, they faced an immediate halt in operations, threatening customer relationships and their reputation for reliable delivery.
Recognising the challenges ahead, Riber Products turned to Major Loss, a specialist in business interruption claims. Martin Grindrod from the Major Loss team took the lead in guiding them through this critical period.
Martin’s support proved invaluable. He worked closely with Riber Products to ensure that all aspects of the claim were prepared, providing essential documentation and detailed analysis to support their case. The careful negotiation with the insurer, the addressing of underinsurance concerns, and the resolution of the vague wording outlined in the policy were all crucial steps in the recovery process.
In a recent interview, Daniel Hunter from Riber Products shared the hurdles they encountered and the pivotal role that Major Loss played in guiding them through the challenging recovery process.
Rebuilding and Strengthening for the Future
Today, Riber Products has not only resumed operations but has emerged with even stronger foundations. The recovery process, although challenging, brought valuable insights and opportunities to reinforce their facilities and procedures. Riber Products has positioned itself for a more resilient future, better equipped to handle any unexpected events.
The proactive approach from Major Loss not only helped expedite the claim process but also provided Riber Products with much needed stability and guidance during a challenging time, allowing them to focus on maintaining their client relationships and minimising long-term impacts on their business. The company’s swift recovery and continued growth are a testament to the importance of having expert support and a trusted partner in times of crisis.
Evidence the Loss
Attention would naturally move to evidencing the losses to the business and presenting these losses to the insurer. Typically, this begins with reviewing and considering company accounts, P&L, management accounts and sales information. When using the loss of gross profit or loss of revenue calculation you will need to maintain your P&L following the date of the incident so any savings can be identified.
Savings are “any usual expenses that are no longer incurred as a direct result of the insured peril”.
The main savings that can be applied when making a business interruption claim include: –
- Rent
- Staff salaries/wages
- Loan payments
- Utilities (gas, water or electric)
More savings can often be applied to the business interruption claim calculation and they can have a significant effect on the overall amount a business receives back from the insurer.
Savings are deducted from the loss of gross profit after the rate of gross profit percentage has been applied to give the loss of revenue or loss of gross profit. It is usually calculated on a monthly basis and multiplied by the loss period.
Indemnity Period when Making a Business Interruption Claim
Most business insurance policies provide a 12- or 24-month indemnity period which is the maximum length of time that a business interruption claim can go on for. An insurance professional will assist in creating a loss calculation specific for your business and requesting interim payments throughout the claim to assist with the business’s cash flow through the claim process.
Seek Independent Advice
With the complicated nature of making a business interruption claim it is always advisable to obtain your own independent advice or assistance, such as a Loss Assessor.
There may be other associated losses such as stock, contents, and business contents (plant and machinery). These typically fall into two categories – restorable or beyond economic repair. Listing, evidencing and pricing can be overwhelming and difficult but it’s essential if you are to agree the value of the claim with your insurer for these items. You may be required to provide a Value at Risk of all contents, stock or plant and machinery and this is usually done on a “new for old basis”.
Once the business is trading to a pre-loss level, or the indemnity period concludes, the insurer will close their claim and ultimately this should mean the business is no worse off than it would have been had the incident not occurred. The ultimate goal when making a claim for business interruption and other associated losses.
If your business has suffered from an insured peril and is suffering from business interruption or other associated losses, then please call 0808 161 7021 or send an enquiry to claims@majorloss.com. One of our experienced members of staff will be happy to assist.
Find out more about how Major Loss can help with you business interruption claim