In this section, we have gone through an 11-step process to calculate a simple loss under a typical Business Interruption policy. While policy wordings do differ, the underlying principle of attempting to return the Insured to the same position as money will allow to that which they would have enjoyed but for the disruption does apply.
The process can be difficult and inaccuracies can cost a business significantly, either by way of the claim being settled for less than was the Insured’s just entitlement, or in delays in settlement with all the distractions, which they bring to the business. As such, expert advice in the form of a Loss Assessor is strongly recommended, and the sooner after the loss has occurred, the better.
Under-insurance, inadequate cover and the Indemnity Period being too short, are major problems in far too many claims. Hence, a section dedicated to such issues, our “Business Interruption Calculators”, has been included in the Website.1