By: Mark Anderson
It is often only when a loss occurs that a broker finds out how good their clients BI policy is. It is too late after a loss to retrospectively change the cover. You may not have seen your client’s financial accounts, so are you satisfied that your client’s BI Policy has:
- The appropriate items of cover.
- Adequate sums insured?
- How has the Gross Profit been calculated?
- Adequate indemnity period?
We will discuss problem areas that commonly occur when setting up a BI policy with a view to assisting brokers to minimise them, and also issues with claims that frequently arise - and how to keep on top of these.
As an example, does your client sub-let part of its premises and receive rental income? Is this rental income insured under their BI Policy?
Content of this workshop covering pre-loss and post loss problem areas will include:
- Do you know your clients business?
- Information to obtain from your client.
- Inability to obtain a set of financial accounts – what to do?
- Items of cover, including Gross Profit, Gross Revenue, Additional Increase in Cost of Working, Gross Rentals, Claim Preparation
- Is it BI policy requirement to provide a worksheet showing how the Gross Profit sum insured was calculated?
- Discussion on actual claims issues – and what we can learn from them
- Industry specific issues
- Claims - overlap of wages with the MD claim
- Claims - Turnover trends
- Claims - Loss mitigation
Mark has been a senior business interruption consultant with Commercial Loss Management since 2003. Commercial Loss Management specialises in acting for insureds to prepare their business interruption claims. He began his business interruption career in 1988, having worked as a Senior Loss Adjuster and then as a Director and Senior Business Interruption Consultant with a specialist Business Interruption consulting firm in Auckland.
Mark has a keen interest in education, training and professional development. For six years, he was an examiner in Business Interruption and has lectured on this subject throughout the country including presentations to brokers continuing education seminars since 1993.
He is a Chartered Accountant and has a Bachelor of Commerce degree. He is an Associate of the Australasian Institute of Chartered Loss Adjusters and the Chartered Institute of Loss Adjusters (UK), a Senior Associate of the Australian and New Zealand Institute of Insurance and Finance and a FUEDI European Loss Adjusting Expert.