Insurance cover for wind and fire damage
PF Olsen has been operating a Group Insurance Scheme since 2000, covering both fire and wind damage. Currently, the scheme covers a total of 373 forests owned by PF Olsen clients, comprising about 33,000 hectares with an insured value of $306 million. In addition to cover for wind and fire, most of these clients also have cover for fire fighting costs, re-establishment costs, claims preparation costs and public liability claims.
The operation of a Group Insurance Scheme has allowed PF Olsen to gain efficiencies in the administration and annual renewal process, which includes a revaluation of the forests for insurance cover purposes. Insurance brokers are invited to bid for the provision of annual insurance cover. Participants in the Group Insurance Scheme benefit from getting the appropriate cover at a competitive cost with no additional administration costs associated with the annual renewal process.
During the past 13 years the PF Olsen Group Scheme insurance cover has been provided by three insurance companies and their associated underwriters. In line with the experience nation-wide, as related in the article above, claims for wind damage within the Scheme have exceeded those for fire damage by 37 to 1. Wind insurance cover is not quite as comprehensive as cover for fire damage; the limit of the cover per event is currently between $300,000 and $500,000 depending on the value of the forest.
The PF Olsen Group Insurance Scheme is open for both existing clients and new clients. For new clients, depending on the forest description information available, a forest inspection and/or forest mapping may be required when joining the Scheme.
If you wish to consider joining the PF Olsen Group Insurance Scheme, contact jeff.schnell@pfolsen.com.