How do we compare

IUA VS. Traditional Business Insurance Polices

How do we compare?

All business insurance policies aren’t created alike. At IUA, our policy wording is designed to ensure that small and large enterprises alike receive the help and support they need – so they can get back into business as quickly as possible. Here’s a summary of how IUA Interruption Insurance compares to traditional business interruption insurance products on the market:

Feature	Traditional business interruption insurance policies	IUA Interruption Insurance Policy Wording
Average	Subject to Average	No Average applied
Savings	Savings of standing charges are typically deducted from settlement	Savings are not deducted from the settlement
Rate of Insured Gross Profit	Calculated at the time of claim using a policy formula and subject to an ‘Adjustments’ clause	Agreed prior to the Policy’s inception
Increased Cost of Working	Insured under ‘Gross Profit’ Subject to economic limits test as well as sole purpose test of whether increased expenditure was to avoid any further reduction in turnover	Included as part of Insured Gross Profit and After Loss Costs Not subject to economic limit test, but merely to a test of whether the additional expenditure was incurred for the sole purpose of avoiding / diminishing the reduction in Turnover
Exclusions	Material damage proviso, perils exclusions and property exclusions, common to ISR Sections 1 & 2	Material damage proviso Various listed exclusions
Claims Preparation Costs / Professional Fees and Additional Increased Cost of Working	Up to the sub-limit of liability for each item	Not sub-limited – covered up to the total amount for Item 2 – After Loss Costs
Suppliers’ and/or Customers’ Premises	Generally sub-limited up to 20% or included by endorsement Typically involves a 48 hour time excess	Automatically included – 100% Sub-limit of liability up to $1,000,000 No time excess Anywhere in Australia and/or New Zealand
Supply chain	By endorsement	Automatically included – 100% Sub-limit of liability up to $1,000,000 No time excess Anywhere in Australia and/or New Zealand
Claims Settlement in the form of weekly payments	No weekly payments Payments to the Insured are in longer intervals Progress payments follow a conservative model until disruption is no longer apparent	Weekly payments paid to the Insured on condition that weekly business turnover information is provided
Premises in the Vicinity (Prevention of Access)	Often sub-limited Typically involves a 48 hour time excess	Automatically included – 100% Full policy limit Includes threat Anywhere in Australia and/or New Zealand
Prevention of Access as a result of threat	If available, often sub-limited with a 48 hour time excess	Automatically included – 100% Full policy limit Anywhere in Australia and/or New Zealand
Public Utilities Extension	Generally either sub-limited, narrowly worded or included by endorsement Typically involves a 48 hour time excess	Automatically included – 100% Sub-limit of liability up to $1,000,000 Anywhere in Australia and/or New Zealand
Infectious or Contagious Diseases	Often sub-limited Typically involves a 48 hour time excess	Excluded Only Legionnaire’s Disease is covered with Sub Limit of liability up to $350,000.
Vermin, Pests or Defective Sanitary Arrangements; Murder, Suicide	Often sub-limited Typically involves a 48 hour time excess	Automatically included - 100% Full policy limit
Departmental Clause	Included	Automatically included
Extended Indemnity Period	If available, included by endorsement	Automatically included
Registered Vehicles, Plant and Equipment at the Premises	Typically included by endorsement only	Automatically included
Property away from the Premises	Typically included by endorsement only	Automatically included

Claim Comparison

Download our hypothetical claim comparison demonstrating potential savings, based on claim data received by IUA from an Interruption Insurance policyholder compared against that of a standard business interruption insurance policy.

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