liquidation the business interruption policy is unable to respond A STATEMENT

Liquidation the business interruption policy is

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liquidation) the business interruption policy is unable to respond. A) STATEMENT OF THE PROBLEM - A business interruption is a contract of indemnity. In property insurance, the insured should be returned to the same position after the insured
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incident that it was in immediately before it. Business interruption insurance extends the principal, providing cover back to what would have been had the loss not occurred, not just back to where it started. One of the key features of traditional BI cover is the "trends" or "special circumstances" clause. This allows the adjuster to take into account the upward or downward trends of the business when arriving at a settlement. Major Problem: - BI loss is found in the preamble to the BI policy - traditionally along the following lines. -The Insurers will pay the amount of the Consequential Loss resulting from interruption of or interference with the Business carried on by the Insured at the Premises consequent upon DAMAGE to Property used by the Insured at the Premises in accordance with the undernoted definitions. -In essence, as long as there is insured damage to property at the premises then all subsequent insured consequential loss is picked up, assuming there is no active, intervening cause, or that the subsequent loss is not too remote to be considered consequent, as per the standard doctrine of proximate cause. Minor Problem: There has to be insured damage to property that is being used by the insured, at the premises, in the course of the business to trigger a business interruption claim. Otherwise, claims could be brought for all sorts of unforeseen circumstances that could affect the business (compulsory purchase orders, for example) without any prior insured damage. B) SIGNIFICANT OF THE STUDY A BI policy operates via agreed definitions, all of which must be understood to ensure the policy will respond to an insured interruption as intended. All of an insured's business that might be affected by an interruption should be included in the definition of "business". If the particular activity is not identified within the definition then the policy cannot respond to the losses incurred by that part of the business. Many larger or global policies are drafted to give an all-encompassing definition of the business, along the lines of.
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