No7 Balmac- a popular Dunedin Restaurant on Maori Hill
What Happened?
On Saturday 18 August 2018 during the busy lunchtime period when the restaurant was full, a fire was spotted coming from the chimney. Fire and Emergency were called, and the restaurant was evacuated.
The fire started in the ventilation system and destroyed the roof. There was significant damage throughout the two-story building, not just from the fire but also from water damage.
The Damage
The damage to the roof was structural and the water damage throughout the restaurant meant the restaurant had to be completely rebuilt. Initially the damage did not seem significant and the owner believed the restaurant would only be shut for 6 weeks.
How long did it take to repair the Restaurant?
It took 10 months to repair the restaurant.
What insurance did the restaurant have?
No7 Balmac was well insured with both a Material Damage policy and a Business Interruption policy.
What happened next?
Able Business Claims was contracted to prepare the Business Interruption Claim for the restaurant.
The decision to open a pop-up restaurant was taken.
The result
No 7 Balmac was able to retain the restaurants profile and keep the existing staff employed while the repairs were taking place.
The pop-up restaurant had 25% capacity of the original restaurant so there was a significant reduction in turnover.
Able Business Claims prepared progress payments claims based on the difference between what was being earned and what would have been earned if there had not been a fire.
What Able Business Claims Did
Analyse the loss of profit and the increased cost of working
Prepare progress claims based on this calculation
This eased the cash flow situation for the Restaurant. Able Business Claims negotiated with the Loss Adjuster and Insurer while the owner focused on managing the rebuild and running the pop-up restaurant as well as her second restaurant, the Esplanade. Five progress claims were prepared over 2 years.
Material Damage Claim
Able Business Claims also became involved in the Material Damage Claim when the owner found they were not receiving compensation for items they had expected to be covered.
Our meticulous record keeping and examination of all correspondence between the Insured and the project managers and the loss adjuster meant the insured received everything they were entitled to.
Just One example of how we assisted with the material damage claim.
The Banquette Seating
The insurance company resisted paying for new Banquette seating stating that the water damage was not significant.
Able Business Claims was able to show that the loss adjuster had not viewed the damage when given the opportunity.
This type of negotiation takes energy and focus which is difficult to have when faced with loss from a fire while still running a business.
Indemnity Period
During a BI Claim many things are negotiated, and it is important that there is a Claims Preparer such as us working for the client.
The Insurer often wants to shorten the indemnity period, the period the claim covers and in this case was keen to close the claim at the stage the restaurant had reopened.
We argued to keep the claim open until the restaurant had fully recovered which meant that the insured received additional payments they would not have received if they had taken the insurer and loss adjusters advice.
Success!
The Restaurant reopened on 10th May 2019, 10 months after the fire.
Able Business Claims ensured that the indemnity period continued after the restaurant re-opened until the restaurant was back trading at full capacity and achieving the profit it would have been achieving if there had not been a fire.
Able Business Claims ensured there were regular progress claims and that everything that could be claimed was claimed.
Able Business Claims got involved in the material damage claim as there were discussions and disagreements about what was betterment and what was replacement. We were able to ensure that betterment was clearly separated from replacement and all replacement expenses were covered.
Wait There’s More!
Within days of turning the heating on, the new floor was found to be faulty and had to be replaced. We supported the client and ensured the second shut down and loss of income and profit was calculated and settled.
Wait, There is Even More!
The client then had a flood in their other restaurant, The Esplanade.
Although they were only closed for one week, the disruption carried on for several weeks after, leading to a significant loss of profit.
The owners knew exactly who to come to. Able Business Claims ensured their loss of profit over this period was covered by the insurance company. This claim was handled quickly, and the client was paid out promptly for the loss of profit arising from one week closure and the recovery period while clientele gradually returned.