Calculating Business Interruption?
Indemnity Period?
The first thing you need to establish is the indemnity period on your business interruption cover. This is the length of time it would take you as a company to get back to trading levels following a total loss claim.
For instance, this could be following a fire which has totally destroyed your premises and production line. The time it would take to re-build the premises and machinery and get back to current production levels, This normally would be selected from a 12, 24 or 36 month period.
Level of Cover required?
Business interruption on Commercial Combined cover is normally issued on a gross profit basis, This is calculated as follows:-
The combined value of the turnover, closing stock and work in progress
Less
The combined value of opening stock and work in progress and uninsured working expenses.
(Turnover = Money paid or payable to your for goods sold and delivered, services provided in the course of the business at the premises)
(Uninsured working expenses = Purchases less any discount received and any discounts allowed)
The calculation on gross profit is essential to save money on your overall annual premium. A lot of companies make the mistake of taking business interruption cover out on their total turnover, which is over insuring as gross profit is what is being covered.
Who is classed as an employee?
Employees?
When declaring employee numbers and wage roll for the purpose of Insurance it is important to include the persons listed below. Any person who is:
- A direct employee
- Under contract of service or apprenticeship with you
- Borrowed by or hired to you
- A labour master or supplied by a labour master
- employed by labour only sub-contractors
- Self employed working under your instruction in connection with the business
- Under a work experience or training scheme
- A voluntary helper, while working under your control in connection with the business
- An out-worker or homeworker when engaged in work on your behalf.
Health and Safety
Many businesses have to be registered with the Local Authority the Health and Safety Executive. If you are in doubt, please consult the following link for further information.www.hse.gov.uk/contact/index.htm
Many Employers, Businesses and companies have questions or queries in connection with Health and Safety regulations and Health and Safety in the workplace issues. Please consult the following link to get more information or to see what other questions Employers, Businesses and Companies are asking… www.hse.gov.uk/contact/faqs/index.htm
Working from Home – Computers
Make sure you have Computer Equipment specified on your policy. If you don’t – No cover.
At Insurance Choice we give you the option:
- Cover your computer in your room only
- In the room and outside the room within the UK
- Computers – Room only cover
- Cover is for theft of the computer equipment. Theft must occur while the computer equipment is situated in your term-time room address. We will pay up to the amount specified in the schedule in respect of those items individually stated.
- Computers – Away from the room
- Cover is for loss, theft, destruction or damage occurring anywhere in the UK. We will pay up to the amount specified in the schedule in respect of those items individually stated.
Cover includes 30 days world-wide cover.
