Business Interruption – Beyond the Basics

The economic impact of business interruption following an insured incident often outweighs the costs of the physical damage.

And as businesses become more sophisticated in their sourcing arrangements and customers become more demanding, risk control measures including insurance cover come under close under scrutiny.

The internet age has also introduced more complex business models, many not involving any physical locations, so the traditional models of cover may no longer be appropriate.

This presentation will provide an overview of recent claims examples to illustrate some of the pitfalls that can arise in cover.

Learning Objectives

• Review the basic cover available in a standard policy for business interruption;
• Review key components such as:
  • Gross Revenue vs Gross Profit cover
  • Indemnity period
  • Seasonality
  • Underinsurance after the Insurance Act;
• Consider business dependencies such as:
  • Internet business models;
  • Hidden global dependencies;
  • Warehousing and fulfillment centres;
• Natural catastrophes (flood and storm);
• Terrorist and other incidents in the vicinity affecting traffic and footfall;
• Deciding liability and making payments after the Enterprise Act
• Big Data
• And more