One thing that sets us apart is our IUA worksheet – We take the hard work out of calculating and explaining the sum insured
When we prepare a quotation, new business or renewal, we provide a detailed worksheet for you to reference and share with your client. The worksheet sets out:
- How cover is calculated; and
- How the claim will be paid
The worksheet is a valuable tool for explaining and informing your client about the extent of their cover and how their cover works, helping you build greater trust and providing complete certainty about the benefit your client could receive. Download an example here.
Basic overview of IUA's worksheet
Turnover, sales, income, revenue (different words for the same thing). Ideally, we want the budgets and forecasts for the Period of Insurance and beyond into the next year.
|2. Agreed Insured Rate of Gross Profit||
IUA will provide you with a quotation based on an industry average for the Insured Business / Occupation. It should be used as a benchmark to discuss with your client.
Ideally, we want your client’s most recent Trading Profit & Loss Statement.
The Insured Rate of Gross Profit is agreed and stated in the contract and is used for calculating the Basis of Settlement.
|3. Seasonal Allowance||
We automatically add an allowance of 50% to the Average Weekly figure. Most businesses do not run at a flat average figure each week, but fluctuate depending on the season. A retailer could fluctuate in December for Christmas or perhaps on Valentine’s day or Mother’s Day. A manufacturer could have a quiet time in January and a peak in September.
50% is a benchmark and can be adjusted to suit the business; for example, a retailer whose turnover increases 300% in December.
|4. After Loss Costs||
After Loss Costs are integral to having adequately comprehensive business interruption insurance coverage and should not be underinsured.
|5. Basis of Settlement||
IUA’s Basis of Settlement is stated on the worksheet. It is simple and can be clearly understood.
|6. Extended Indemnity Period||
We believe that long indemnity periods are important and a period of 2 years is an ideal benchmark. This does not mean that your client needs a 2 year Sum Insured, in fact, in many cases it is not necessary to consider insuring a full 2 years Gross Profit plus trends.
IUA’s Policy does not have an average clause which means that in some cases we can tailor cover to a suitable Sum Insured or more fitting Indemnity Period.