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Ask a Question |
Insurance Glossary |
Understanding Risk & Insurance |
Benefits |
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Contact
Following a major insured loss and period of interruption due to an insured event at your premises, there will undoubtedly be an impact on your revenue, and therefore gross profit. Not only will this be in the immediate clear up and period while you aren’t trading, but also a deferred loss until you are trading at the same levels you were prior to the loss.
This covers your Gross Profit after variable expenses but including fixed costs such as wageroll, in the event of an insured interruption to your business.
This covers your actual revenue in the event of an insured interruption to your business.
Provides cove in respect of costs incurred following an insured event to pay expenses over and above ‘reasonable expenditure’ to get a business back up and running as soon as possible, even if deemed not cost effective.
The period you select for cover to continue is important, and should reflect how long it will take you following a loss to return to the pre-loss trading position in terms of Revenue or Gross Profit.
Critical to the speedy recovery of a business is a robust business continuity/disaster recovery plan. Many insurers we deal with offer assistance to this effect, as it is proven that such plans improve the speed of recovery, which in turn improves the position of the insurer. Some insurers offer a discount where an insured has such plans in place.
Optometry Wales is offering a complimentary Business Interruption review to all Optometry Wales members. To take us up on this offer, please contact us. We will assist you in considering what cover is right for you, the indemnity period required, and how to calculate the correct figures to ensure adequate insurance is in place.
Business interruption cover applies only when a physical loss occurs by a defined peril as detailed in you material damage section of the policy. Furthermore, Business interruption cover must be specifically noted as operative for cover to be in force. If you are unsure as to whether you have cover in the event of an interruption to your business, please call us, as we are more than happy to help.
Finally, it is very unlikely you will have cover for an interruption from viruses and hackers, unless you have specific cyber insurance cover as such insured perils are not covered by a traditional Insurance policy. Such claims are rising, and it is important you understand the impact of not being able to access your computer systems may have on your business.
Optometry Wales Insurance Services is happy to discuss all the issues raised in this Newsletter with any member. Please do not hesitate to contact us should you which to discuss any aspect in more detail.