Establishing Insurable Gross Profit

David Hole ACII – technical insurance trainer

David is an experienced insurance professional with a career spanning 39 years; he has enjoyed wide exposure in the London Insurance Market and elsewhere resulting from his industry-specific training activity.

David is a part-time complaint manager for a Lloyd’s coverholder, as well as a subject matter expert for the Chartered Insurance Institute, authoring and updating modules for the CII computer-based training programme, Broker Assess. His experience includes Head of Claims at Plum Underwriting Ltd, where he was responsible for managing the relationship between insurers and claims third party administrators, handling larger claims received via technical referral processes.

David has been delivering technical insurance training for over 20 years, to a variety of different industry customers in the UK and abroad and provides examination support for clients undertaking CII studies to achieve industry recognised designations. He provides training on many general insurance classes up to at least intermediate level to include motor trade insurance, cyber, marine cargo, commercial property, business interruption, liabilities, construction, engineering, and trade credit. He also delivers more generic underwriting and claims training.

• Understand the nature of insurable gross profit is and how it differs from the accountant’s definition
• Appreciate the nature of fixed costs and why insurance for these is required
• Be able to explain the application of the economic limit to claims settled on the basis of increased costs of working

• Explaining the finding in Infinity v Heath Crawford
• Defining insurable gross profit and how this differs from the accountant’s definition
• Consideration of the potential pitfalls in calculating a firm’s gross profit.
• Explain how the rate of gross profit assists in calculating the ‘economic limit’ applicable to ICOW claims
• Those situations in which AICOW settlements may be justified