BI

Question 1

What is BI?

Answer 1

Business interruption insurance covers loss of income suffered by a business because it has had to close or restrict its activities due to certain events.

Question 2

Types of business interruption cover

Answer 2

Gross revenue
Gross profit
Increased cost of working
Rent receivable
Books debts
Denial of access
Notifiable diseases, murder/suicide food/drink poisoning
Patterns
Research and development
Lottery winners increased costs

Question 3

Gross revenue

Answer 3

covers the reduction in turnover following a loss and also any increased cost of working

Question 4

Gross profit

Answer 4

covers lost profit if an insurable event occurs.

Question 5

Increased cost of working

Answer 5

The increased costs incurred after a property damage loss, to limit any reduction in turnover or revenue and to maintain normal business operations. These expenses could include such items as hiring alternate premises, temporary staff, additional freight or storage etc

Question 6

Book debts

Answer 6

the cost of reproducing records and chasing debtors following the destruction of accounting records following an event.

we will indemnify you for the loss of income resulting from your inability to trace or establish your outstanding debit balances as a direct result of damage

Question 7

Denial of access

Answer 7

Loss resulting from not being able to enter the business premises and perform everyday business activities. I.e flood