ISR Claims Guide

ISR insurance operates on an all-risks basis. That's a fundamental difference from standard property insurance and it changes everything about how claims work.

With a standard business pack, the insurer lists the events that are covered - fire, storm, theft, and so on. If the event isn't listed, the claim is declined. You have to prove the loss fits a named peril.

ISR flips that approach. The starting position is that the loss is covered unless a specific exclusion applies. You still need to prove the loss occurred and its value, but the question of whether the type of event is covered is generally broader under an all-risks policy.

In practice, this means ISR claims often have a broader scope from the outset. Your broker lodges the claim, the insurer appoints a loss adjustor to assess the damage, and the process runs from there. That said, policy conditions, warranties, and disclosure obligations still apply - ISR isn't a blank cheque.

The most common ISR claims we see across our book fall into these categories:

Fire and Explosion

The biggest claims by dollar value. Fire can destroy a building and its contents in hours, and the rebuild process often runs 12 to 18 months. ISR covers the property damage, debris removal, and the business interruption or loss of rent during the rebuild period.

Storm and Flood Damage

Roof damage from storms is extremely common for industrial and commercial properties. Flood claims are more complex - they tend to involve larger losses, longer assessment periods, and more documentation. If your ISR policy includes flood cover, the claims process is the same as any other peril.

Business Interruption and Loss of Rent

These are consequential loss claims that sit alongside the property damage. If a fire destroys a tenanted warehouse, the building owner loses rental income during the rebuild. BI claims require detailed financial records and are often the most complex part of an ISR claim to settle.

Machinery Breakdown

For properties with plant and equipment - cold rooms, HVAC systems, lifts, generators - machinery breakdown cover responds when equipment fails due to electrical or mechanical fault rather than external damage.

Theft, Malicious Damage, and Impact

Break-ins, vandalism, and vehicle impact are straightforward claims in most cases. The damage is visible, the cause is clear, and the assessment is relatively quick.

Glass Breakage

Common for retail and commercial properties with shopfronts. Usually minor in value but frequent in occurrence.

The ISR claims process follows a consistent path regardless of the type of loss. Here's what happens at each stage:

Step 1: Notify Your Broker Immediately

As soon as a loss occurs, contact your broker. Don't wait to gather all the information first - early notification is important. We can advise on immediate steps like making the site safe and preserving evidence while we prepare the formal notification.

Step 2: We Lodge the Claim With the Insurer

Your broker prepares and submits the claim notification to the insurer. We frame the claim properly from the start, referencing the relevant sections of your policy and providing initial details of the loss. How a claim is presented at the outset can influence how smoothly it progresses.

Step 3: Loss Adjustor Appointed

For most ISR claims above a certain value, the insurer appoints an independent loss adjustor to assess the damage. The loss adjustor inspects the site, reviews documentation, and reports back to the insurer with their assessment of the claim's validity and value.

Step 4: Documentation Gathered

This is where preparation pays off. The loss adjustor and insurer will need photos of the damage, repair or rebuild quotes, financial records for any BI component (profit and loss statements, BAS, rental schedules), and any relevant compliance certificates. Your broker coordinates this process and helps you compile what's needed.

Step 5: Assessment and Negotiation

The loss adjustor provides their assessment to the insurer. If the initial assessment doesn't reflect the actual loss, your broker negotiates on your behalf. This is particularly important for complex claims involving business interruption, where the calculation of loss can be contested.

Step 6: Settlement

Once the claim is agreed, the insurer pays the settlement amount less your excess. Some claims are settled in a single payment. Larger claims may involve progress payments as rebuilding work is completed.

On a small, straightforward claim you could probably manage the process yourself. But for anything significant, having a broker manage your ISR claim makes a material difference to the outcome.

Here's what we actually do:

Lodgement and Framing

We present the claim to the insurer in the right way from day one. Properly framed claims progress faster and face fewer queries. We know what each insurer needs and how they assess different types of loss.

Loss Adjustor Coordination

We work directly with the loss adjustor throughout the assessment. If they need additional information, we coordinate that. If their site inspection raises questions, we're across it.

Progress Chasing

Claims can stall. Documents sit in queues, assessments get delayed, decisions take longer than they should. We actively chase progress with the insurer and loss adjustor so the claim doesn't drift.

Settlement Review and Advocacy

When the insurer presents a settlement offer, we review it against the actual loss. If the offer doesn't reflect the true value of the claim, we push back. For large ISR claims, the difference between a fair settlement and an inadequate one often comes down to how well the claim is presented and managed.

This advocacy is particularly important for commercial property claims involving business interruption. BI calculations are inherently complex - they involve projections of what the business would have earned, and insurers don't always agree with the policyholder's figures. Having a broker who understands BI claims and can present the financial case properly is worth the effort.

The faster you can provide documentation, the faster your claim moves. Here's what you'll typically need for an ISR claim:

For All Property Claims

• Photos of the damage (take these immediately, before any cleanup or temporary repairs)
• Repair or rebuild quotes from licensed tradespeople or builders
• Building valuation report (your current replacement cost valuation)
• Details of the event - when it happened, what caused the damage, what was affected
• Police report number (for theft, malicious damage, or impact claims)

For Business Interruption or Loss of Rent Claims

• Tenancy schedule showing all tenants, rental amounts, and lease terms
• Profit and loss statements (typically the last two financial years)
• BAS statements
• Rental income records
• Evidence of any ongoing costs during the interruption period

For Compliance-Related Claims

• Fire protection compliance certificates
• Electrical testing records
• Building compliance certificates
• Council approvals for any previous works