Unlike other insurers, we take the hard work out of calculating the sum insured. We’ll do it for you and provide you with a customised worksheet based on your client’s situation, that you can then share with your clients. This helps them understand how the claim will be calculated, and how much we’ll pay.
The indemnity period should be the time your client believes it will take to reasonably restore their business cash flow to normal levels.
We recommend that businesses take out a long indemnity period, so they’ll be covered for interruptions that could affect the business over the longer term. That’s why we offer an extended indemnity period on all our policies – from 13 weeks to up to two years.
Here’s an example of how IUA’s extended indemnity can help a business recover from a long interruption.
Case study:
A printer suffers a fire. By all accounts it is a total loss.
However, from a business interruption point of view, this isn’t the case. Within weeks the insured has outsourced its operations to a third party, enabling them to keep most of their customers and minimise loss of turnover, though resulting in increased costs.
After nine months the printer moves into its new premises. At this time, they haven’t exhausted their Insured Gross Profit cover – with only a portion being paid out. By extending the residual limit of liability to two years, the business can continue to claim for the extended loss of turnover, until the business is back to where it was before the fire interrupted its ability to trade.
Note that because IUA’s policy doesn’t contain an underinsurance clause, the alternative of two years Insured Gross Profit can be costly and as such, isn’t often taken up.
Like all policies, IUA’s Interruption Insurance Policy Wording has some exclusions.
A full list of exclusions is set out in the Policy Wording, but here are some of the most important you need to know about. We won’t cover interruption which:
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Refer to our Brochure or Policy Wording or call us on 02 9307 6655
Click below to request an IUA business interruption insurance quote.
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