Textile and Apparel
Stock is high, it moves daily, and the declaration was made in March. The average clause was designed for exactly this gap.
What we see
- Fire in a godown, a process house or a finished-goods store
- Transit losses on fabric and yarn moving between job workers
- Machinery breakdown on looms, stenters and processing lines
- Burglary from a warehouse or a site store
Where these claims go wrong
two, specificallyThe sum insured was set at last year's stock
Stock values in this trade swing with the season and with cotton prices. A declaration policy exists for exactly this and most units are not on one.
Goods at a job worker
Fabric sitting at a processor is often outside the cover unless it has been specifically arranged, and it is the stock most likely to be forgotten when the sum insured is set.
Open these first
Fire Claim
A fire, explosion, lightning strike or impact loss at a business premises.
Marine Cargo Claim
Goods damaged, short-landed or lost in transit by road, rail, sea or air.
Machinery Breakdown Claim
A machine has failed electrically or mechanically and stopped production.
Before the renewalUnderinsurance is the commonest reduction in every one of these sectors. Three numbers will tell you where you stand.
Had one of these, and the file already going sideways?
Whoever placed your policy, and whatever stage the claim has reached.