Business Interruption - Claims Example 10-10-23


1.00 CPD Hours

$89.00 +GST Retail
$74.00 +GST Learning Partner

Learn Module Detail

By: Mark Anderson  

Duration: 1.08

We will discuss a Business Interruption calculation of loss as a worked example.

Using this claim example we will focus on:

  • How each part of the claim is calculated.
  • Look at the specific part of the Policy wording that relates to each component of the claim.
  • What the loss would be under various scenarios where the Policy is inadequate and the financial implication to the insured.
  • Discuss common misunderstandings.

It is often only when a loss occurs that an insured and their broker find out how good their BI policy is. It is too late after a loss to retrospectively change the cover, so looking at a calculation of loss is a good way of demonstrating the importance of:

  • The appropriate items of cover. 
  • Adequate sums insured.
  • Appropriate Gross Profit and Uninsured Working Expenses.
  • Adequate indemnity period? 

Content of this workshop will include:

  • “adjustments” clause.
  • Variations with Policy definitions of Uninsured Working Expenses, and the financial impact this can have on a claim.
  • The most common BI losses that are excluded from claims, but could have been included in the claim if the client’s cover had been better constructed.
  • Importance of progress payments.
  • Discussion on actual claims issues – and what we can learn from them.


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