Insurance Were a church not a business so whats this got to do with us Well always find a space to carry on teaching our children and the staff will keep turning up so What we will talk about ID: 321345
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Slide1
Business Interruption
Insurance
We’re a church, not a business, so what’s this got to do with us???
We’ll always find a space to carry on teaching our children – and the staff will keep turning
up, so…Slide2
What we will talk about…
Why have BI cover?What sort of damage do I consider when calculating BI?
Understanding the different types of BI coverGross Profit
Additional CostsClaims preparation
OtherLength of cover
Quantifying the amount of cover you needSlide3
What and Why???
BI insurance reduces the financial burden of operating that may result from damage to your property (damaged property must be insured for material damage in order to claim BI insurance).
Assumption that what you are doing is worthwhile in the Kingdom of God
Others are depending on you to be thereFiduciary responsibility of trustees
E.g. avoiding bankruptcy! Avoid negative financial impact on othersReputation….Slide4
What risk do you envisage when you calculate your BI insurance cover?
Assumes you DON’T start with what you can afford to pay in premiums!
Theft – because it’s the most common?Intentional damage (e.g. someone has broken in and trashed the office).
Fire?Flood? Depends where you are.Tornado?
Earthquake?Slide5
Lesson 1
Work out what the biggest risk of financial loss from one event might be.Lesson 2
Do your homework thoroughly to calculate the potential losses – BEFORE you decide how much business interruption insurance you can afford to buy.Slide6
Types of BI CoverRefer to policy for definitions
Gross profitAdditional costsBook debtsClaim preparation costsFines or damagesRedeployment costs
Severance and redundancy paymentsOtherSlide7
Lesson 3
Keep the wording on the schedule simple so that cover is as broad as possible. Avoid any ambiguity!Lesson 4
If you’re not sure about BI insurance cover, get advice!Slide8
Length of Cover
Policy provides for 3 years.You can request more.Which of your operating costs are fixed irrespective of how long you are out of action, and which are ongoing until the damaged item is replaced or repaired?Is your income affected by how long it takes to repair/replace damaged buildings/equipment? Does the impact reduce over time?Slide9
How long?Will depend on type of damage, so plan for worst case scenario.
Allow for time to obtain consents.In worst case scenario will other organisations be competing for engineers/ builders, etc? Understand your organisation’s decision-making procedures.Slide10
Lesson 5
Don’t underestimate how long it takes for church bodies to make decisions!
Take that into account when working out the length of time you think it will take to recover. Slide11
Exercises
Divide into 3 groups to consider:A parish scenarioA diocesan scenario
A school scenarioSlide12
Lessons
Work out what the biggest risk of damage from one event might be.Do your homework thoroughly to calculate the potential losses – BEFORE you decide how much business interruption insurance you can afford to buy.
Keep the wording on the schedule simple so that cover is as broad as possible. Avoid any ambiguity!If you’re not sure about BI insurance cover, get advice!
Don’t under estimate how long it takes for church bodies to make decisions! Take that into account when working out the length of time you think it will take to recover.