Replay: Business interruption declared values
A business interruption (BI) policy can provide cash flows to support a business in the event of a loss and can help to fund a continuity plan. With the unforeseen circumstances surrounding COVID-19, many businesses have seen significant changes to their payroll and employee headcount, as well as a heavy impact on their ability to generate revenue. Volatile commodity prices for oil and natural gas, as well as volatility in currency and foreign exchange rates, are just some influences that may result in a material impact on the calculation of declared values. It is important for clients with BI cover to accurately assess these declared values to see where they can transfer risk, eliminate wasted premium and avoid penalty of co-insurance or average in the event of a loss (where applicable).
In the most recent installment of our special webinar series held on 27th May, which is now available for replay, David McIntosh – Head of Forensic, Pacific, discusses the importance of having a BI policy and the questions to ask in a COVID-19 world.
Key insights that were shared in the presentation include:
- The importance of getting business interruption values right
- How COVID-19 may impact your business and its declared values
- Understanding the declared value levers such as gross profit calculation, treatment of payroll, indemnity period and the trends of your business
- Cash flow versus certainty
- Ways in which the Marsh Forensic team can help and support your business
- Avoiding consequences of structural changes to policy