CPD Event - Stephen Mason - Introduction to Business Interruption Insurance

Session overview

We will begin by looking at some of the reasons why handling this class of business is often seen as more difficult than dealing with the other major classes of business.

We will then examine the BI policy wording and definitions for Gross profit cover and will explain the two alternative methods available to the client. We will discuss how to arrive at a sum insured, including how to project forward to allow for future changes in the client’s business. We will look at the advantages and disadvantages to the client in using the Declaration Linked basis rather than the older, more traditional method of arriving at a sum insured.

The workshop will include discussion on how to select an appropriate Maximum Indemnity Period and we also look at some of the more common Business Interruption extensions available.

Learning objectives & outcomes

Experienced attendees will find this session useful as a refresher, whilst newer entrants to the industry will have gained a better understanding of:

Business interruption insurance

The need for and function of business interruption insurance.

What needs to be insured and not insured.

Gross profit

The distinction between accountants’ and insurers’ gross profit.

The ‘Sum Insured ‘ and the ‘Difference’ basis of gross profit.

Calculation of gross profit sum insured from presented accounts.

Maximum indemnity period

The selection of the maximum indemnity period and rationale of choice.

Standard and extra perils

Standard and extra perils insured on interruption policies.

Additional clauses

Additional clauses commonly added to policies, including:
• suppliers and customers extensions
• public utilities
• denial of access
• loss of attraction
• notifiable diseases cover

About The Speaker - Stephen Mason

Stephen’s first job aged sixteen was with Willis in Ipswich. Eventually he became the Professional Development Manager and since then has held senior Learning & Development roles with the Chartered Insurance Institute, the British Insurance Brokers Association and Marsh. For the past twelve years he has been a freelance training consultant.

Lunch available from 12.30pm, seminar commences at 1pm