Fire and Loss of Profit Insurance

Course details

Loss-of-Profits insurance is intended to cover losses to a business following physical damage by fire or breakdown, until turnover has recovered to a similar level to that prior to the damage. It requires that a fire or machinery breakdown policy has been effected by the insured. Cover is for a maximum sum insured representing the insured's gross profit and the increased cost of working for the anticipated period that production is interrupted following the physical damage, and for a maximum indemnity period representing the anticipated period to restore the business to normal operations and profitability. Hence this course serves as an inroduction to  Fire & Loss of Profits Insurance.

Objectives

Upon the completion of this course, the participant will be able to:

• Define the physical and financial assets protected in property and business interruption insurance
• Classify the main contingencies covered by property insurance
• Illustrate the cover provided by different types of property policies
• Discuss the main terms and conditions related to property insurance and apply appropriate terms to relevant property cover
• Discuss the cover provided by business interruption insurance and examine its interrelationship with property insurance
• Apply risk perception, assessment and underwriting to property and business interruption insurance.

Target Audience:

• Insurance employees, Brokers, Agents, Loss Adjusters, Employees who manage insurance in non-insurance companies.

Course Structure

• The course is conducted via a combination of lectures; case studies; role plays; and videos, where applicable.

Program Contents:

• General introduction to property and business interruption insurance
• Insurance principles vis-à-vis property and business interruption insurance
• Essentials of the property and business interruption insurance contracts
• Fire and special perils policy
• Home insurance
• Property all risk policy
• Business interruption policy
• Special policy extensions and covers
• Nature of fire and loss prevention
• Rating and underwriting
• Maximum possible loss
• Property reinsurance
• Claims aspects

Day Topics to be covered

• 1 Main concepts related to fire insurance
• 2 Main fire policies' clauses, memorandum and conditions
• 3 Maximum Loss
• 4 Main fire underwriting and rating considerations
• 5 Main concepts related to fire insurance