Home' Australian Ageing Agenda : AAA Nov-Dec 2013 Contents Providing holistic insurance and business
solutions for the Aged Care Industry
A close call
The wild weather
caused by ex-
Oswald in January
this year was the
third time Blue Care has
initiated its organisational-
wide disaster management
plans in just two years.
Almost all of the 80
communities Blue Care
operates in were affected
by the violent storms but
unlike RSL Care none of the
organisation's 260 sites were
significantly inundated with
water. Nevertheless staff
faced fierce winds, power and
network outages and even the
threat of crocodiles and snakes
swimming in rising waters.
In Queensland, residential
facilities were isolated in towns
such as Emerald, Lowood,
Rockhampton and Gladstone,
and facilities on the New
South Wales far north coast
were ready to evacuate, as
were facilities in Logan and
Bundaberg in Queensland.
Blue Care's northern
services were first affected
by the storm on 20 January
and within five days the storm
cell's impact could be felt
across the whole organisation.
More than 60 sites had their IT
and communication networks
brought down and many sites
also lost electricity and needed
generators to keep powered.
In Bundaberg, the city
experienced its worst flooding
on record and the river came
within inches of facility doors.
As part of the emergency
response, approximately 80
residents were moved from
the lower lying rooms at the
Millbank and Riverlea aged
care facilities to higher lying
areas and contingency plans
were in place in case a full
What: Floods caused by ex-Tropical Cyclone Oswald
When: January 2013
Where: Queensland and northern New South Wales
Who: Blue Care
Rear of Blue Care Millbank Village aged care facility in Bundaberg.
Flood levels lap the hot water
system at Riverlea aged
Inspecting where the flood level
rose to on Blue Care Riverlea
aged care facility buildings in
Bundaberg. Blue Care Fraser
Coast General Manager Amanda
Farrar (centre) with John Doolan
and Patrice King, who led the
Riverlea evacuation team.
Whilst nobody can predict
when they might incur
a loss or damage from
a peril such as fire,
explosion, storm, cyclone
or flood, will you be able to answer these
burning questions at the moment of truth?
Are your business assets fully
When were the replacement values of
your buildings and contents last reviewed?
These are questions every business
should ask itself.
Implementing an effective risk
mitigation strategy that includes steps to
protect your assets as well as an annual
review of your insurance cover is key. As
explained below, failure to do so could
have significant financial consequences if
a claim occurs.
If I suffer a loss, how much can I
claim under my insurance policy?
When asked the question, your
answer would naturally be that as long
as the amount of any loss is less than the
level of insurance cover I have selected,
that I can claim up to this amount in
full from the insurer. You would be
right in the event you suffer a total loss
with both your building and contents
destroyed, which is good reason to
ensure you have adequate insurance
covering the total replacement value of
your buildings and contents. However...
What if I suffer a partial loss? Will
I get paid the full amount of my claim as
long as it is within the sum insured?
If you are underinsured, the answer is
Let's look at a simple example...
Take a business that has a building
insured for $300,000. Let's say the
actual replacement cost of the building
is $600,000. A fire causes damage to the
building with a cost of $200,000 to repair.
Question: How much of the
$200,000 amount claimed will the
Answer: A maximum of $100,000
less any policy excess.
Although the amount claimed
($200,000) is less than the Sum Insured
($300,000) when the building is not
insured for it's full replacement value, the
insurer will apply the "average" clause.
As the Building was only insured
originally for 50% of its replacement
cost, the insurer will only pay this
proportion of the amount claimed.
The above example highlights the
need to ensure that your building and/or
contents are insured for replacement value
and this is reviewed at least annually. n
Melissa Linke P: 03 9425 1315
Andrew Marshall P: 03 9425 1320
Risk management: Are you underinsured?
For the small saving in premium, could your business afford
the large cost of underinsurance?
www.australianageingagenda.com.au | 57
Links Archive AAA Mar-Apl 2014 AAA Spt-Oct 2013 Navigation Previous Page Next Page