Business interruption claims are perceived to be considered by some insurance professionals as difficult to understand and quantify. The cover provided by insurers is obviously different to that given for material damage insurance policies. Calculating a Business Interruption loss regularly requires a number of factors to be considered and data which is provided by a policyholder’s financial data and accounts.
The calculation of an appropriate sum insured needs to take into account the policy definition of gross profit as well as considering a suitable indemnity period and possible growth or otherwise in the trading position of a policyholder.
This lecture will provide a brief review of the covers provided by insurers for Business Interruption claims. Information will be provided on rates of gross profits to be used for a number of different types of businesses/ industries, suitable indemnity periods and consideration of Increase in Cost of Working expenditure.
Claims professionals dealing with low to medium value Business Interruption claims would benefit from attending this lecture.
· Business Interruption cover provided by Insurers
· The calculation of loss Of Gross Profit
· Suitable Indemnity Periods
· Consideration of Increase in Cost of Working expenditure
Learning Objectives for CPD records
· To obtain an understanding of how cover is provided by insurers
· To have an understanding of how the business interruption section of an insurance policy operates to provide an indemnity
· To be able to consider the implications of increase in cost of working expenditure
· To obtain information to be able to present and validate simple business interruption claims
Who Should Attend
Anyone who works in general insurance and is exposed to business interruption claims.
Nick is dual qualified as a loss adjuster and accountant, and has been managing the business interruption and stock aspects of first and third party major losses for nearly 25 years. He previously had over 10 years’ experience with Big 4 and mid-tier chartered accounting practices. Nick has first-hand experience of many wide area catastrophes, both within the UK and overseas.
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.