3(b). Business Interruption Policies
Some Policies contain an Average/Co-Insurance clause which is fully set out in the “Basis
of Cover” or “Policy Specification” of the Policy. For the types of cover most usually
provided, the Average/Co-Insurance calculation is arrived at by applying the Rate of Gross
Profit, Revenue or Rentals (as applicable) to the Annual Turnover, Revenue of Rentals (as
applicable). These factors being appropriately adjusted for in the “Trend of Business” or
“Other Circumstances” clause.
If you are in any doubt regarding this clause insofar as it applies to your Policy, please
contact your Account Executive for assistance.
It is recommended that a Business Interruption Analysis (BIA) is undertaken by an
appropriately qualified and professional person to ensure the adequacy of your sum insured
and indemnity period.
Marsh Forensic Accounts Claims Services (FACs) can undertake a BIA reviews should
you require this additional service (which would be subject to a separately negotiated
consulting fee).