M93 - Chapter 9 Flashcards
For BI Claims, what does the claims procedures condition ask for?
Access to the Insured books or certified accounts (may independently check)
What does the Property damage proviso expect for a claim to be paid
There is property insured adequately to repair the damage
There is insurable interest in the property & contingencies are covered
(Property damage proviso) Claims will be paid if at point of claim
When BI is insured separately
Contingences covered on all property owned/responsibility of the insured and that those properties are covered.
The property damage insurer (if separate), has admitted liability, paid the claim or would have paid the claim had it been over excess amount.
What is the department clause?
Effects basis of settlement where only one/some departments are effected by the loss. An adjustor would have to look at varying rates of profit per department and aim to settle in favour of the Insurer.
What’s unique about the other dependencies and contingencies extension?
it does allow for BI claims associated to property not owned by the insured (suppliers etc.) its normally set as a percentage of the sum insured and where declaration linked has a maximum payment of 133.33%
What are the other dependencies covered in BI?
There’s lots
Specific and un-specified suppliers Specific and un-specified customers Property stored at 3rd parties Transit Motor Contract sites Exhibition sites Supply undertakings/public utilities Accidental failure of utilities Denial of access Action by police Prevention of access - Loss of attraction Specified disease, food poisoning, murder.
Concerning C19 - What was the view of the Supreme court relating to BI claims
- Each illness sustained by a individual was an individual occurrence
- Cover only responded to occurrences within a defined radius, and
- All illnesses sustained were ‘equally effective’ proximate causes to the actions of the government
Whats a Inter-dependency & group inter-dependency clause all about?
Applies to cases where groups/companies rely on each-other for supplies or information, but are not insured under the same policy (like Lloyd and Whyte)
Therefore the clause allows for BI to extend to losses of this nature.
Steps to complete a Business continuity plan?
Risk Analyses (Mapping, impact, reduction)
Emergency action plan (people, site security, arrangements, disaster recovery log, comms)
Test and Maintain
A number of insurers now provide free or discounted assistance in creating such plans.
An extension covering specified disease, murder etc. Will typically?
Set a maximum indemnity period & loss limit
