Notre-Dame: iconic cathedral had no insurance

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The French Government will be footing the bill for rebuilding Notre-Dame de Paris as the cathedral is state-owned and has no private insurance cover against fire and other catastrophes.

But Axa, the country’s biggest insurer, is possibly facing huge claims as it provided insurance for some historical items that were housed in the Paris cathedral.

Additionally, two of the construction firms that were carrying out restoration works before the fire broke out on Monday had taken out civil liability policies with Axa. French investigators say there is no evidence to suggest the fire was arson.

While the proximate cause of the fire has not yet been established, similar fires have taken place during restoration projects.

At least €700 million ($1.1 billion) in private donations has been promised to support the rebuilding effort, with some of France’s wealthiest families and major companies digging deep to contribute. Axa is donating €10 million ($15.7 million) to the fundraising campaign.

President Emmanuel Macron says an international fundraising drive will be launched to finance the reconstruction effort, which he expects will take five years.

Fire and emergency crews managed to save a number of artworks and the sacred Crown of Thorns, purportedly a relic of the crown placed on the head of Jesus before his crucifixion.

A Swiss Re spokesman told insuranceNEWS.com.au works of art and relics are typically not insured because they are often priceless.

In Australia, the iconic Sydney Opera House is insured by NSW state-owned insurer icare.

“Our insurance scheme covers, among other things, damage to the Opera House caused by fire and natural disasters such as severe storms, and is supported by an extensive reinsurance program in commercial markets, both locally and internationally,” an icare spokesman told insuranceNEWS.com.au.

“icare insures government assets across NSW valued at more than $193 billion, including everyday infrastructure like bridges, schools and hospitals.”

Why small businesses use an insurance broker

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Small business owners tend to be born optimists with little inclination to think about what could go wrong. That’s why it pays to have an insurance broker in your corner to safeguard what you’ve worked for.

Paul Harrison’s family-owned shoe shop in Sydney’s Neutral Bay has operated out of various locations for more than half a century. It’s used insurance brokers for the past 35 years.

“When I came on board, we already had insurance but not at the level we needed,” says Harrison. “Most of the insurance we had was good, but it took time. If we made a claim, an assessor would come along; then he’d send you forms to fill out before repairs could begin. All that time you’re not trading.”

Save yourself time

Anyone who has compared car, home or health insurance policies to try to find the best deal knows how time consuming it can be. Choosing a business insurance package is even more complex because of the range of risks requiring cover.

A business insurance broker will not only save you time sourcing the right policy, they can also save time and money if you need to make a claim.

That was Harrison’s recent experience with his long standing Steadfast insurance broker.

“We had a leakage from the residential unit above our premises that ruined our ceiling, stock and floor. With rent and wages to pay, you can’t afford to be out of business for two months. Our business insurance broker was onto it straight away. We were able to replace our flooring within two days and probably missed five days’ trading in all”.

Utilise your business insurance broker’s experience

Small business owners are great at what they do, whether it’s running a café or a consultancy. But they are rarely insurance experts. “What they may not understand is the broad range of risks they face,” says Dallas Booth, chief executive of the National Insurance Brokers Association(NIBA).

A business insurance broker will help identify the risks your business faces, then get the insurance package that matches those risks. “There’s no point buying a business package off the shelf if it only covers some of your risks,” says Booth.

“I don’t think you can do that on your own. You may think you know what can go wrong but you never realise how much [an adverse event] impacts on your business going forward,” says Harrison.

Read the full Steadfast article here.