Business Interruption

Business Interruption (BI) cover is primarily purchased by a business or group to reimburse the policyholder for a loss of gross profit (and occasionally gross revenue) caused by a covered peril. It will also provide cover for certain additional costs that are incurred specifically to mitigate these gross profit/revenue losses.

After a loss, the settlement for Business Interruption claims may not always provide an adequate coverage to the policyholder. This can be for many reasons such as an inadequate sum insured, miscalculation / misunderstanding of the rate of gross profit or an insufficient period of indemnity.

Situations where a Business Interruption policy does not provide adequate coverage to the policyholder can result in undesirable consequences to all stakeholders including the policyholder, insurer and broker. A policyholder may not be fully reimbursed for its true losses; an insurer may be charging insufficient premium where sums insured are under-declared; the relationship between policyholders and insurer can deteriorate; brokers may be exposed to Professional Indemnity claims against them if the policyholder considers the fault was not their own.

By attending this event you will gain a further understanding of:

• the various items and cover within a Business Interruption policy wording
• how to mitigate the risks of underinsurance
• the economic limits of Increased Cost of Working
• the benefits of Additional ICOW
• the importance of adequate indemnity periods
• the significance of ‘know your customer’
• calculating an adequate sum insured with reference to company accounts

Lunch and refreshments available.

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