This easy to read book is the result of joint collaboration between the Insurance Institute of London (IIL) and the Chartered Institute of Loss Adjusters (CILA). Its aim is to deal with the most commonly encountered difficulties in business interruption (BI) policy wordings, examine the consequences and offer potential solutions. This initial report was not exhaustive and more complex issues needed deeper study. A study group, jointly chaired by Harry Roberts and Damian Glynn, was formed with the aim of addressing recurring problem topics on policy wordings identified by the BI community and CILA. This publication does not propose prescriptive new wordings but highlights those areas where clarification may help customers, insurers and adjusters. It does not claim to be exhaustive but examines the most commonly encountered problems areas with the objective of avoiding similar claims giving rise to different outcomes depending on a particular interpretation of a policy wording. This publication includes coverage of the following: The perceived definition of Gross Profit and how this can differ from the insurance policy definition The scope of cover for Rent and misunderstandings around Rent Receivable and Rent Payable The issues that arise when there is Wide Area Damage and the impact of Orient Express Hotels v Assicurazioni Generali SpA (2010) case Confusion around Suppliers’/Customers’ Extensions, using Buncefield as an example How Time Deductibles should be applied The intention of Underwriters in relation to Depreciation Savings
