BI is more than just the insurance of Gross Profit. Cover is automatically provided for Increased Costs as part of the Gross Profit item. But there are limitations to what can be claimed under this item – often referred to as Item 1(b). What are the “tests” that need to be satisfied for an extra cost to be covered under Item 1(b)? Why is it recommended that BI policies have the separate item of cover for Additional Costs? It might be called “Additional Costs” or “Additional Cost of Working”, but most frequently it is called Additional Increase in Cost of Working (“AICOW”). Whatever it is called – it is the wording that is important.
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