Business Interruption

Question 1

What is Business Interruption?

Answer 1

is a line that complements property damage insurance. it does so by protecting the cash flow of the businesses that have been hit by accidental, destructive events

Question 2

BI - FACT

Answer 2

must cause material damage, BI policy covers the lost of income from any dip in sales that occurred while the factory was undergoing repairs

Question 3

What Extension to BI coverage?

Answer 3

BI coverage that cover disruption to insured business caused by damages at premises not owned or occupied by them, such as premises of insured customers and suppliers.

Question 4

BI coverage have introduced coverage for what perils

Answer 4

outbreaks of contagious disease that result in shutdown of the insured business

Question 5

Elaborate on the twin towers

Answer 5

the great destruction of the twin towers and damage to surrounding property following the notorious terrorist attack on the word trade centre in 2021.

• of this 33% was BI claims, 30% Property damage.

Question 6

Channel tunnel what happened

Answer 6

Channel tunnel - rail tunnel runs 38k under sea joining England and France - the most serious fire to date, which occurred in 11 Sep 2008 resulted in physical damage to the tunnel infrastructure that cost £60 million to repair

• 5months till the tunnel opened. this cost the tunnel owners (Get link) around £185million in lost revenue over 3x the cost of the physical daamge.

Question 7

what Perils do BI cover

Answer 7

catastrophic peril - fire, explosion, flood, storm

Question 8

small damages to business premises or other assets rarely results results in major BI claims

TRUE OR FALSE

Answer 8

TRUE

Question 9

ESSAY CHAPTERS FOR BI

Answer 9

1. intro what is BI and extension
2. separate line
3. the need for BI and examples
4. more examples
5. BI mirrors property - all perils in property all perils in BI
6. BI only effective with property cover
7. BI perils and new Perils

Question 10

the extensions of BI cover

Answer 10

• covers disruption to insureds business caused by damage at premises not owned or occupied by them.

Question 11

BI introduced other covers, please say

Answer 11

• covers losses by outbreaks of contagious disease - resulting in the shutdown of the business, closure due to bomb threats.

Question 12

CAN BI be written by a private insurer?

Answer 12

YES

Question 13

MATERIAL DAMAGE PROVISO (MATERIAL DAMAGE WARRANTY) WHY WE NEED THIS?

Answer 13

THE NEED FOR PROPERTY DAMAGE NEEDS TO BE IN PLACE, BEFORE BI
COVER CAN BE TRIGGERED.

Question 14

WHAT WILL THE MATERISAL DAMAGE PROVISO STATE

Answer 14

THIS WILL STATE THAT FOR THE BUSINESS FOR THE BI COVER TO BE EFFECTIVE THERE MUST NOT ONLY BE A POLICY IN FORCE TO COVER THE MATERIAL DAMAGE THAT HAS OCCURED BUT ALSO A VALID CLAIM PAID OR ADMITTED UNDER IT

• BREACH OF GOOD FAITH WILL EFFECT BI