Business Interruption – Calculating a Claims Payment

EVENT OVERVIEW

How does an insurer assess the amount to be paid for a Business Interruption claim, when the “lost” profit is in the future and hasn’t been earned?

This module explains the method and tools used to arrive at an equitable solution.

•             Rate of Gross Profit

•             Comparison of Standard and Actual Turnover

•             Adjusting for Trends

•             Are Increased Working Costs economic?

•             Savings

•             Test for Average?

•             The issue of Depreciation

LEARNING OUTCOMES

By the end of the session, you should understand:

• Calculate the Rate of Gross Profit from a set of accounts
• Explain what is meant by ‘Standard’ and ‘Actual’ Turnover
• Determine whether Increased Working Costs are economic
• Understand how Depreciation can affect a claim settlement

SPEAKER BIO

Chris Abram ACII, F Inst. SMM, Nick Thomas & Associates

Chris is an insurance and financial services professional with over 40 years’ experience in the industry, covering training, sales & underwriting.

For the last 15 years he has been a full-time training consultant, working with groups and individuals to develop their technical, compliance and sales skills. This includes preparation for the various levels of CII qualifications.

His experience includes time as a technical consultant on a local, Government-sponsored, insurance apprenticeship scheme; and in the implementation of a compliance-training project with a major UK bank.

Chris is an Associate of the Chartered Insurance Institute [ACII], and a Fellow of the Institute of Sales & Marketing Management (F Inst. SMM) 


He is capable of a broad spectrum of high-quality training, but has particular specialism in Property, Business Interruption, Liability, and Packages.