News & views

Monday, September 12, 2016

In the UK business interruption insurance market, under-declaration is a significant issue. The Chartered Institute of Loss Adjusters found that, of the policies underwritten on a declaration-linked basis, 43% were under-declared, by an average amount of 50%*. 

In response, NIG is offering its brokers free access to an online cost calculator that can more accurately determine the business interruption risk for their NIG-insured commercial clients.

This easy-to-use tool is linked to NIG policy wordings, meaning that brokers can have full confidence in the cover that they are securing.

It helps obtain both the correct sum insured and indemnity period - minimising the risk of leaving clients underinsured.

The comprehensive question set can be filled out by brokers or can be sent direct to clients for them to complete.

With the Insurance Act 2015 now in force as of August 12th, the BI Calculator has taken on an increased importance.

As part of the act, prospective policyholders are required to provide a "fair presentation of the risk" on which the Insurer will base his assessment and acceptance of the case.

Whilst using the calculator does not guarantee full compliance, it goes some way towards assisting with a "fair presentation of risk" and will give underwriters and brokers confidence that the financial aspects of the risk have been fully considered and are well understood.

Brokers can request access to the BI Calculator today from the Underwriting contact working on their NIG case.

Steve Scott Director of Broker Markets at NIG commented:

“For businesses across the UK, having the right level of interruption cover is critical to the ability of a business to recover fully following a claim.

“At NIG, our aim is to help our brokers to provide even more effective cover to their customers. By equipping them with a tool that calculates and clearly demonstrates to their commercial clients the exposure that they face and the level of cover required to mitigate that risk, NIG has taken an important step towards achieving that goal.”