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BUSINESS INTERRUPTION INSURANCE (Working of sum insured ( Understand…
BUSINESS INTERRUPTION
INSURANCE
DEFINITION: covers the loss of income
that a business suffers after a disaster
BUSINESS INTERRUPTION COVERAGE
Relocation
Employees wages
Rent
Taxes
revenue
BUSINESS INTERRUPTION CAN'T COVER
Utilities
Income that isn't documented
losses from partial closure
losses from closure caused by non-covered damage
PERIOD OF INDEMNITY
The indemnity period or maximum indemnity period, is the maximum length of time specified in months, that the policy will support the business following an insured event causing an interruption to the business.
Periods of 6month, 12month, 18month and 24month are common and there will often be a standard limit written into a policy, especially a package policy.
The factors will differ from business to business and indeed from claim to claim, but certainly the major considerations are ;
Rebuilding
Business Contents and Machiner
Rebuilding of Customer Base
Working of sum insured
Understand client’s needs & objectives
Underwriting Considerations
Type of Policies and Clauses
Working of Claim Amount
What Is not Covered
Rating Factors