BUSINESS INTERRUPTION INSURANCE (Working of sum insured (Understand…
BUSINESS INTERRUPTION INSURANCE
Is a type of insurance that covers the loss of income that a business suffers after a disaster.
Protect the insured against loss of income
Put the insured in the same financial position as if no loss had occurred.
Scope of coverage
To protect the prospective earnings of the insured business.
Provides cover for the financial losses due to an interruption to a business caused by damage to property.
Revenue –Income earned during period
Rent or lease payments –Continue payment
Relocation –Temporary location
Employee wages –Make payroll
Taxes –Required tax
Utilities –Typically stopped
Income that isn't documented
Losses from partial closures
Losses from closures caused by non-covered damages
“A contract by which one party promises to save the other from loss caused to him by the conduct of the promisor himself, or by the conduct of any other person,
2 Parties :
Indemnity holder and Indemnifier
Working of sum insured
Understand client’s needs & objectives
Type of Policies and Clauses
Working of Claim Amount
What Is not Covered
The premium is calculated by applying a rate to the Gross profit sums insured