We recently attended a fascinating lecture in Bradford on the subject of Business Interruption Insurance - hosted by Nick Longson of Cunningham Lindsey.
Nick gave us a great insight into some of the potential pitfalls when arranging BI cover. Whilst this is certainly a very complex subject, Nick advised us of 4 simple factors to consider, which should go a long way to ensuring that adequate cover is in place.
1. Use declaration linked cover (to avoid average being applied to the loss).
2. Use Insurance Gross Profit and NOT Accountant’s Gross Profit (there is a big difference).
3. Use 24 months maximum indemnity period.
4. Include standard extensions.