If business has to stop, are the sums right?

Recently, we've had a few large claims where the Business Interruption sum insured was underestimated. We don't want your clients to discover a problem, especially when they're facing a difficult period, so here's how we're going to help.

What was wrong?

There seemed to be a misunderstanding of our definition of Gross Profit/Revenue. These should include all wages, so it's important that you factor these in when estimating the Business Interruption sum insured - while also carefully considering the indemnity period with your clients.

What we're going to do

We'll work closely with you and policyholders to avoid this issue in the future. Our underwriters will review all existing policies where the current Business Interruption sum insured or estimate doesn't appear right when compared with the wage-roll estimates (under the Employers' Liability section).

We'll then be in touch during the pre-renewal process so that you can review the sums insured and estimates with your client or clients and set them at appropriate levels for the future.

Like to know more?

Just ask your local trading team or account manager.

Published: 16/06/2008