In addition to these exclusions and additions, brokers should warn their microbusiness clients about the time deductibles that are often included in business interruption policies
Typical business interruption policies
cover the loss measured at gross earnings less other discontinuing expenses.
Traditional business interruption policies
focus on damage caused by fire or flood and do not consider DoS attacks at all.
The original pounds 150m loss estimate, based on exposure to aviation, property, worker compensation and business interruption policies
, was made three days after the atrocities.
Many business interruption policies
contain a co-insurace clause (also called a "contribution percentage").
Best's Review magazine has released a new interactive white paper discussing the importance of developing a business continuity plan in advance that recognizes the likely exposures and contingencies and how business interruption policies
can respond after a large loss or catastrophe.
In the event of concrete losses due to system shutdown, some business interruption policies
may kick in as well, as could business interruption provisions within a cyber policy, if buyers elected to obtain that coverage.
Business interruption policies
typically require a triple trigger: an actual loss of business income, a suspension of operations, and the loss must result from covered, direct physical loss or damage to the premises.
Under most business interruption policies
, amounts paid to salaried employees are treated as a continuing expense and paid.
The policy can cover losses from a single or multiple hurricanes during the annual policy term, and can be used to reduce windstorm deductibles in current property and business interruption policies
while limiting the accumulation of losses from multiple storms in a season.
Most business interruption policies
contain language like this: "Due consideration shall be given to the experience of the business before and after the loss in evaluating the lost business income.
They are likely to find that their conventional insurance policies will not cover the impact on their business, because traditional Property Damage and Business Interruption policies
usually contain a Radioactive Contamination Exclusion Clause, which excludes any damage, denial of access or other consequences arising from nuclear radiation or contamination.
The policy is triggered if the Super Bowl is canceled or moved for any reason, whereas most business interruption policies
are triggered by physical damage.
The run-up in commodity prices has caused many risk managers in the utilities sector to turn to business interruption coverage, says Marshall Nadel, managing director of utilities at AON Natural Resources, as business interruption policies
allow risk managers to cover the costs of purchasing replacement power in the event of an unplanned power outage.
11 terrorist attacks, yet it remains a big vulnerability for policyholders and the insurers that sell the business interruption policies
to cover those losses, according to a software firm consultant.