HOW A CLAIM IS CALCULATED
The Underlying principle- Step 1.1: Does the BI policy cover the loss?
- Step 1.2: Not all disruptions follow damage
- Step 2.1: Calculate the Standard Turnover
- Step 2.2: Calculate the Standard Turnover – part 2
- Step 3.1: Calculate the Adjusted Standard Turnover
- Step 3.2: Grouped as trend and special circumstances
- Step 3.3: Analysis of monthly turnover
- Step 3.3: Analysis continues
- Step 4.1: Turnover elsewhere
- Step 4.2: Shortfall calculated
- Step 5.1: Calculate the Rate of Gross Profit
- Step 5.2: Uninsured working expenses
- Step 5.3: Adjusting the Rate of Gross Profit
- Step 5.4: Adjustments take skill & time
- Step 5.5: Agreeing the Rate of Gross Profit
- Step 6: Calculate the Loss of Gross Profit (Item 1A)
- Step 7: Increased Cost of Working
- Step 8: Savings
- Step 9: How a claim is calculated – Traditional Policies
- Step 9.1: Check for Adequacy of Insurance
- Step 9.2: Check for Adequacy of Insurance Continues
- Step 9.3: The cost of under insurance
- Step 10: How a claim is calculated – Declaration Linked Policies?
- Step 10.1: Declaration Linked Policies
- Step 11: Additional Increase in Cost of Working
- Summary of Claim Calculation