Business Interruption (BI) Insurance

Business Interruption (BI) Insurance:

          a.  Cover: 

                i.  BI insurance covers a business for actual or potential loss of earnings and additional expenses incurred   

                    as a result of a material loss under a property. Also called (Loss of Profits or Consequential loss insurance)

                ii. Material Damage Warranty – BI losses always follow MD loss.

                iii. Earnings may be reduced or stopped , bills still needs to be paid (Accountants & others)or even increased.

                iv. Indemnity Period – 12, 24 or 36 months

                v.  Gross Profit, Wages and Accountants or Auditors fees, Specified Working Expenses.

                vi. BI cover starts from the time of Loss, to the time business has re started and continues until trading is restored to pre loss levels.

           b. Extensions: 

                i.   Specified Suppliers

                ii.  Specified Customers

                iii.  Unspecified Suppliers

                iv.  Transit

                v.   Prevention of Access

                vi.  Public Utilities

            c. Type of Policies:

                      i. Fire and Special Perils – The standard perils extended to include non-domestic boilers.

                      ii. Engineering – failure of public utilities supply or sudden and unforeseen from accidental damage not excluded.

                      iii. All Risks – material damage and business interruption as a combined policy

             d. Others:

                      i. Silent risks such as Offices etc., Additional Expenses may more appropriate than BI, given the turnaround time to restart trading.

                      ii. Manufacturing Risks – BI cover is more appropriate

Creditor Insurance:

          a.  Cover: 

                i. An insured’s inability to continue credit instalment payments due to redundancy or unemployment 

                ii. Cover is usually for 24 months and excludes the 1^st month in any period.

Liability Insurance:

                 a. Introduction: –

                         We all have a duty of care to others who we come in contact with on a day-to-day basis. When this is

                         breached, we may have to pay compensation to the aggrieved party who suffered as a result of their

                         negligence. There are times where you may still have to pay for cost to get advice or defense or taking

                         action, Liability Insurance is available for the above.

                     b. Policies available:

                            i.   Employers Liability

                            ii.  Public Liability

                            iii. Products Liability

                            iv. Professional Indemnity (Medical Malpractice)

                            v.  Directors & Officers (D&O)