Are you covered? CRS’s biggest and most common claims revealed

Car Collision

New analysis of data from Capricorn Risk Services (CRS) shows the range of claims Members make against their protection policies — and the eye-watering dollar values of some of the payouts Members have received.*

CRS provides protection for a wide range of business needs — everything from tools cover to management liability to home and contents protection — but it’s collisions that are the top reason Members need to claim. Interestingly, for an industry that spends our time fixing vehicles when things go wrong for our customers, one in four of the claims Members make against their policies is for collisions.

The second most common reason for claims (17% of all claims) is for faulty workmanship. Faulty workmanship claims can be incredibly expensive, with CRS processing several claims worth between A$30,000 and A$40,000.

Fires and storms each account for 14% of all claims. Perhaps not surprisingly, given how total the devastation from fires and storms can be, claims relating to these two kinds of disaster are also the most expensive Capricorn sees.

The highest amount Capricorn has paid out on a single claim is more than A$1.4 million for a fire in a transmission workshop. Fires account for seven of the top 10 most expensive claims — for fires affecting car yards and mechanical workshops across Australia and New Zealand — with the rest ranging from A$380,000 to $758,000.

Storms account for two of the top 10 claim amounts, of A$325,000 and $651,000. Storms are often the cause of very expensive claims. For example, three claims associated with Cyclone Damien in 2020 were in excess of A$100,000, and Capricorn processed 22 claims worth a total of A$1.1 million.

Storm rolling over coast

Capricorn’s data shows 8% of claims are for damage to property that’s in a Member’s care, but not owned by a Member — for example, a customer’s vehicle. That’s what the insurance industry calls “care, custody or control” — and it’s a common liability exclusion on a lot of policies in the wider insurance industry for which Capricorn has particular protection available.

Personal injury accounts for 4% of claims and theft for 3%, while accidental damage, burglary, impact, water damage, malicious damage, glass breakages and breakdowns account for most of the rest (all in the 1-2% range).

While claims for burglary might be less common, those thefts can be extremely impactful on the businesses concerned. Burglaries on workshops can be targeted and well-coordinated, causing painful interruption to the business while tools and equipment are replaced. CRS has paid out claims as high as A$54,500 for burglaries.

Capricorn Mutual Product and Underwriting Manager Lucas Rohde said the data isn’t just a fascinating insight into the volume, sorts and size of claims Capricorn processes; it is also a reminder to Members to double-check they’re adequately protected.

“We always hope something won’t happen to us and our businesses, but that’s the whole point of protection — when you need it, you better have it,” he said. “I think this data is an excellent reminder that you never know what’s going to happen. If you haven’t checked your policies lately, now’s a good time to do it. If something unexpected happens, you’ll be glad you did.”

Talk to your Risk Account Manager or contact CRS today to talk about your coverage and ensure you are adequately protected.

* This data was collated from an analysis of all successful CRS Member claims over a 3 year period.

AU: Products sold through Capricorn Risk Services Pty Ltd (ABN 93 111 632 789) are: (i) discretionary risk protection products issued by Capricorn Mutual Ltd; and (ii) general insurance products issued by a range of insurers and brokered through Capricorn Insurance Services Pty Ltd. Before deciding to acquire any product you should consider the Product Disclosure Statement available from Capricorn Risk Services Pty Ltd to see if the product is appropriate for you. Capricorn Risk Services Pty Ltd is a Corporate Authorised Representative (No. 460893) of Capricorn Mutual Ltd (AFSL 230038) and Capricorn Insurance Services Pty Ltd (AFSL 435197).

NZ: Products sold through Capricorn Risk Services Pty Ltd (NZBN 9429041139813) include discretionary risk protection and general insurance products. Discretionary risk protection is issued out of Australia by Capricorn Mutual Ltd. Before deciding to acquire discretionary risk protection you should consider the Product Disclosure Statement to see if it is appropriate for you. This can be obtained from Capricorn Risk Services Pty Ltd by phoning 0800 555 303 via email or by visiting website General insurance products are issued by a range of insurers and are available through Capricorn Risk Services Pty Ltd as a member broker of PSC Connect NZ Limited. Capricorn Risk Services Pty Ltd is a registered financial services provider (390446) and a corporate Authorised Representative (No. 460893) of Capricorn Mutual Ltd (AFSL 230038).

This article was published 27/07/2021 and the content is current as at the date of publication.