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.