HOW SHOULD WAGES BE INSURED?

As has been previously stated, total flexibility is only achieved by insuring Wages in full for the entire Indemnity Period.
If Pay-Roll is to be Insured separately using the Dual Wages Method, 100% of Pay-Roll should be shown as an Uninsured Working Expense as Pay-Roll is insured separately as a separate item. By using BICalculator, this will all be done automatically by the system when you select “No” to the question on Pay-Roll Assumptions that reads: “Is full Pay-Roll to be insured as part of Item 1 – Loss of Gross Profit. If you intend insuring 100% of Pay-Roll the Coach recommends you do not split it out but insure it as part of Gross Profit. In such a case you should select “Yes”.
If no is selected Users of BICalcualtor should not deduct Pay-Roll or any part thereof (such as wages or salaries) as an Uninsured Working Expense when calculating Gross Profit on Screen 4.
RELATED LINKS
- CHANGES IN LABOUR
- CHANGES TO RISK MANAGEMENT
- WHAT DO THE CHANGES MEAN TO THE INSURANCE OF PAYROLL?
- THE CONSEQUENCES OF UNDER-INSURANCE OF WAGES
- WHAT IS INSURED IN PAYROLL?
- FULL WAGES COVER IS BEST
- PART WAGES INSURED - KEY / ESSENTIAL STAFF
- INSURING NON-ESSENTIAL STAFF FOR SHORT PERIODS
- INSURING ONLY A PERCENTAGE OF WAGES
- DUAL WAGES INSURANCE
- SEVERANCE PAY
- SUMMARY OF DISCUSSION ON WAGES