Replay: Business Interruption Declared Values
A business interruption policy provides cash flows to support a business in the event of a loss and helps 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 on oil and natural gas, as well as 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 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 a special webinar series held on the 2nd June, which is now available for replay, George Germanis – Principal, Forensic, Pacific, discusses the importance of having a BI policy and the questions your business should be asking, in a COVID-19 world.
The key insights that were shared in the presentation include:
- The importance and need to get your business interruption values right
- How the Forensic team can help assess your situation
- Why business interruption insurance is important
- Understanding the declared value levers such as your gross profit calculation, treatment of payroll, indemnity period and the trends of your business
- Cash flow versus certainty
- Avoiding consequences of structural changes to policy