Webinar: The importance of setting correct BI sums insured in a post-Covid world
Two lockdowns and massive drops in customer numbers will mean the 2020 book of accounts for most businesses will have absolutely no reflection of the true earning capacity of that enterprise. So how do clients go about setting a correct Business interruption sums insured for the forthcoming period of insurance?
Traditional methods of projecting correct business interruption sums insured are creating potentially inappropriate outcomes. Taking the insurance gross profit calculated from the clients last book of accounts and projecting this through the indemnity period will lead in many cases to significant shortfalls for the client, because it is unlikely to reflect the better trading positions which hopefully are to come, now the welcome news of vaccines are on the way.
A new way has to be found, one in which much more discussion has to take place between underwriter and broker - letters of intent may well have to be issued as a way of finding a fair and equitable way to reimburse the client, given previous books of account are unlikely to provide a fair level of compensation.
This webinar will start by running through how business interruption insurance is normally set up and will include examining the steps involved in how a BI claim is settled. Once this basis is established the session will explore how to project sums insured through the indemnity period and why the underwriter broker relationship has never been more important. Letters of intent may become the temporary new norm.
This is a highly topical webinar, particularly for professionals involved with BI.
At the end of this session delegates will have gained an insight into:
- the difference between accounting gross profit and insurance gross profit including understanding declaration linked cover.
- the steps in a BI claim.
- how to project a BI sum insured including taking into account future economic changes.
This demonstrates the quality of an event and that it meets CII member CPD scheme requirements.
1 hour's CPD can be claimed for this event if relevant to your learning and development needs.
It is recommended that you keep any evidence of the CPD activity you have completed and upload copies to the recording tool as the CII may ask to see this if your record is selected for review. Details of the scheme can be viewed online at www.cii.co.uk/cpd.