CONSIDERATIONS
1. For shops within shopping centres we
recommend as a minimum you choose an
indemnity period of no less than 18 months.
Should you wish a 24 month period, please
call our office.
2. When allowing for inflation and trend
assume your worst case scenario of
having a loss on the last day of your
insurance policy. For example, if you insure
for the period 1/1/05 to 1/1/06 and your
indemnity period is 18 months and a loss
occurs on 31.12.05. The indemnity period
expires 18 months after 1/1/06, so the
inflation, trend estimates and gross profit
estimates should allow
for this scenario.The insurer policy
wording defines the following words and
basis of settlement as follows:-
Revenue: means the Money paid to you as
wholesaler or retailer of goods (Goods sold
& delivered in the course of the business.
For a professional practitioner or personal
services provider - for services rendered
and for work performed in connection with
the business.
Basis of settlement:
The insurer will indemnify You for : a) in
respect of Revenue, the amount by which
Revenue earned during the Indemnity Period
in consequence of damage falls short of the
Standard Revenue for the period; and b) in
respect of Increased Cost of Working, the
additional expenditure necessarily incurred
to reduce any loss of Revenue during the
Indemnity Period in consequence of Damage,
but not exceeding the reduction in Revenue
thereby avoided, less any amount saved during
the Indemnity Period in respect of charges
or expenses or outgoings of Your Business
payable out of Revenue that may cease
or be reduced in consequence of Damage.
Accountant fees:
The insurer will pay the cost of reasonable
Accountant's fees payable to an Accountant
for preparing and submitting claims under
Business Interruption section or combined
fire & perils and business interruption
sections. The insurer will pay automatically
up to $10,000 unless a different figure is
nominated above.
Indemnity Period:
This means the period commencing with the
occurrence of the Damage and ending at the
expiration of the Indemnity Period stated in
the insurance schedule during which period
the Standard Revenue of the Business is
affected in consequences of the Damage.
Wages/Payroll- which include employee
wages & directors wages, payroll tax, fringe
benefit tax, holiday pay, sick pay,
workcover premiums, superannuation & pension
fund contributions, but excluding bonuses,
sales commission & any other monetary or
financial reward not listed.
The amount payable if you choose the
Payroll Option will be the actual
amount, which you would have Paid as wages
for such period to employees whose service
cannot be utilised by you at all or the
equitable part of the wages payable for
employees who cannot be utilised to the full
as a consequence of damage occurring at your
risk address.
This extension is limited to the indemnity
period specified in the schedule beginning
from the date the damage occurred.
The benefit is to be calculated, by
averaging the weekly or monthly wages or
payroll over the preceding 12 months from
the date the damage occurred thus allowing
for variation & circumstances affecting the
business in the proceeding 12 months.
Disclaimer
The Gross profit calculator is to be used as
a guide only and does not substitute the
professional advice of your professional
accountant. Every care has been taken to
ensure the accuracy of the calculator, but
you should always
rely on professional advice. |