Insurance Gross Profit differs from Accountancy Gross Profit. Accurate calculation is required – do not simply use the figure from your trading accounts.
The British Insurance Brokers Association recommends a minimum of a 24 month business interruption indemnity period.
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.
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.
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 firstname.lastname@example.org.