Calculating business interruption Insurance

[@well]

How do I calculate what BI cover is needed? I am a new startup company providing a subcontract engineering service, rented unit and I am the sole employee. At present there is no continued business to be interrupted! The insurance broker (Allianz) does not want to advise.

[insurance_jon]

First of all Allianz aren't an insurance broker, they are an insurer, as such they are not in a position to give advice, only to provide a service.

Business interruption is usually insuraning your Gross Profit, against one of your insured perils i.e fire - Your unit burns down and destroys all your kit and you can't fully trade for the next 6 months it will pay you your loss of Gross Profit for that period.

To chose the right levels of cover you need to take your projected GP, and add 10% for margin of error, and how long you need the over for i.e 12, 24 or 36 months.

i.e £100k over 12 months or £200k over 24 months.

Should the worst happen your loss adjuster would look at your first few months trading to see your monthly averages, and current growth.


I trust this helps, but it sounds like you could do with a quote;)

If you need a quote, or want to go through the above point in more detail, feel free to give me a ring:

01924 895568
www.lockyers.co.uk

Jon

[@well]

Thanks for the reply Jon, I will give you a call when I get a spare minute tomorrow.

[@well]

Big thanks to Jon and Jamie at Lockyers for sorting out our insurance today.
A nice approachable bunch that I can’t recommend highly enough.

Cheers

[insurance_jon]

Cheers Thom! All business is appreciated. Apologies for the initial cock up. Thats what happens when you let the know it all boss loose on the shiny new computer..........Jamie has taken it off me now