Top Tips

Gross Profit

Insurance Gross Profit differs from Accountancy Gross Profit.  Accurate calculation is required – do not simply use the figure from your trading accounts.

Indemnity Period

The British Insurance Brokers Association recommends a minimum of a 24 month business interruption indemnity period.

Avoid Average

Make sure you understand how to calculate your sum insured.  If your sum insured is below the actual value of the item, the condition of average may apply in the event of a claim, meaning you will not receive the full amount you are claiming for.

Condition of Average

Sum Insured £100,000

Actual Value £200,000

Percentage of underinsurance = 50%

Value of claim £50,000

Maximum amount of claim settlement = £50,000 x 50% = £25,000

Claim is reduced by the percentage of underinsurance.

Changes to Your Business

Make sure you advise of any changes to your business activities, premises, sums insured as soon as possible.

Claims Notification

Your policy may contain time limits within which you must notify your insurer of a claim.  Potential claims should be reported as soon as possible.

Engineering Inspections

Employers have a statutory duty to ensure that their plant and machinery is safe to operate.  Many items of plant are the subject of safety legislation requiring regular inspection by a competent person.  Failure to comply with this legislation could lead to criminal prosecution.

If you wish to discuss how these Top Tips affect your business then please get in touch on 01235 868535 or