Substantial Savings on Insurance Premium with Greater Coverage at Early Education Holdings

Solution

Early Education Holdings approached Howden and undertook a comprehensive review of the insurance policies of all their centres and successfully negotiated significant improvements to the coverage. The following changes were made:

1. Accidental Damage Cover: The accidental damage coverage limit was increased tenfold from $50,000 to $500,000. This change ensures that if the facility suffers significant accidental damage. Accidental damage covers any loss or damage caused other than from fire, storm, explosion etc. As the revised cover is noticeably greater, this provides substantial protection against expensive repair, replacement, or rebuilding costs.
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2. Theft Cover: Theft cover was increased from $50,000 to $250,000. This fivefold increase provides added security against the loss or damage caused by theft, protecting the centre’s valuable equipment and materials, which are essential for the day-to-day functioning of the kindergarten.
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3. Machinery Breakdown and Spoilage of Goods Cover: The policy for machinery breakdown and spoilage of goods, which was previously limited to $5,000, was expanded to $50,000. This ensures that in the event of breakdowns affecting essential equipment, such as refrigerators or air-conditioning units, the centre can cover both the repair/replacement costs and any losses from spoiled food or supplies.
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4. Personal Accident Cover (Newly Added): Previously uninsured, the addition of personal accident cover ensures that staff members and volunteers are now protected against injuries sustained on-site. This coverage provides peace of mind, ensuring that medical expenses and other costs arising from accidents are taken care of, without placing a financial burden on the individuals or the institution.