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 Diseases, Murder, Suicide
  • Often sub-limited
  • Typically involves a 48 hour time excess
  • Automatically included – 100%
  • Not time deductible
  • 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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