All past present and future activities undertaken or to be undertaken by the

All past present and future activities undertaken or

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All past, present and future activities undertaken or to be undertaken by the Insured. C) COPE AND LIMITATION The policy should cover all the premises that are owned, occupied or used by the insured within the territorial limits of the policy. Most insurers require premises to be listed. Premises not listed, owned, occupied or used by the insured need to be covered by an extension - see extensions section below. As with the definition of "business", the premises of larger clients are usually given an all-embracing definition (subject to
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separate detailed disclosure) along the lines of: Any premises owned occupied or utilized by the Insured within the Territorial Limits, which has been declared and accepted by the Insurers. D) CONCEPTUAL FRAMEWORK Increased cost of working (ICOW) is additional costs spent to maintain the business at pre-loss levels and mitigate the loss of gross profit. The ICOW item is limited to an amount "not exceeding the amount of reduction thereby avoided." The principle here is that, as the cover is all part of the loss of turnover item, the insured cannot spend more than the profit/revenue that would have been lost if additional costs were not incurred. In other words, they cannot spend more than a pound to save a pound. Ideally, all anticipated increased costs should be agreed with the loss adjuster/insurer before being incurred, although insureds have a duty to mitigate the loss. The policy does not normally pay for any time costs expended when actually compiling the claim. E) PARADIGM OF THE STUDY The claim is compiled by comparing the actual turnover earned during the interruption with that of the preceding calendar period. Any loss arising is then adjusted for any trends and reduced for any savings made because the business was not fully operating. The loss is always limited by the rate of gross profit. The rate of gross profit is the proportion gross profit bears to turnover, 2) WHAT THE BUSINESS PILICY COVERS The business standard policy sets a formula for how the loss will be settled. Most business interruption policy are arranged as -Gross profit -Gross revenue -Increased cost of working. 3 ) Items to consider when setting the business indemnity period When thinking about indemnity period length, the worst-case scenario should be considered. Recovery actions often take place at then then same time, example obtaining planning permission while rebuilding the planning quotation. However, some cannot and will drive the required length of indemnity period. Item to consider - Thinking/decision time. There may be business continuity plan in place, but major loss may cause changes, example a business may decide to
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