2 January 2020
2020 annual insurance renewal – changes to coverage and premium
Reef Casino Trust (RCT) has recently completed its annual insurance renewal process in relation to the Reef Hotel Casino complex following consultation with its insurance broker. Challenging market conditions in the insurance industry have led to reductions in the insurance coverage available on commercially reasonable terms for certain risks and an increase in premium costs. These factors have led to RCT obtaining 2020 annual insurance coverage from 31 December 2019 with the following key changes to note:
Property damage and business interruption coverage has an unchanged overall policy loss limit, but reduced sub-limits for events including named cyclones (up to $25m), flood (up to $5m) and action by the sea, tidal wave and high water (up to $1m).
An annual premium cost for RCT of approximately $1.3 million in 2020 which represents a $487,000 increase from the current year’s insurance premium cost.