Fergusons Insurance Brokers

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39B Davey St Frankston, Victoria
Phone: (613) 9783-3200

As a client it’s important that the needs of the business are understood by our Insurance broker each annual review. We also need timely assistance when we have queries ,make claims or promptly request information. At Fergusons Insurance Brokers our Account Manager Pasco ensures that all our needs are met and that our business is covered in every area of our insurance needs. Finally , Pasco goes the extra mile to ensure we can save monies on our Premiums and find what’s best for us.

- Brian Johnstone
  Pro-Struct Property Group Pty Ltd

   Emergency After Hours

   0409 411 235

Business Interruption (Loss of Profit)

Business Interruption or Loss Of Profits Insurance covers loss of income following a material damage loss and is designed to place the insured in the same financial position as they were prior to the loss.

As Business Interruption Insurance has a 100% co-insurance clause it is essential that the correct sums insured are calculated. When calculating the relevant sum insured they are split into the following sections: 

1. Insurable Gross Profit

There are several methods of calculating the sum insured for Business Interruption Insurance, they are;

  1. Additions Method
  2. Difference Method
  3. Turnover Method

Refer to office for full explanation.

2. Payroll

The definition of payroll means the remuneration (including but not limited to payroll, tax, fringe benefits tax, bonuses, holiday pay, sick pay, workers compensation insurance premiums, accident compensation levies, superannuation and pension fund contributions and the like) paid to all employees of the insured.

The different methods of insuring payroll are as follows:

a)      100% of wages are included under gross profit.

This is the simplest method of insuring payroll.

or

b)      Dual Wages Basis

This method offers for more flexibility for the client who does not need a full 100% wage cover in the event of a loss.  

3. Additional Increased Cost of Working

This is a first loss item (no co-insurance).

The insured is indemnified for any additional increased cost of working (not otherwise the coverable under the gross profit item) necessarily and reasonably incurred for the sole purpose of avoiding or diminishing the reduction in turnover and maintaining normal operation of the business. 

4. Claims Preparation Costs

To cover the insured for reasonable professional fees and other reasonable expenses necessarily incurred to prepare their insurance claim. 

5. Indemnity Period

The indemnity period is the period of cover provided from the date of loss.

It is essential that the correct period is selected. Depending on what industry the period could be anything up to 24 months or even more. 

6. Major Policy Extensions

Suppliers premises.

Customers premises.

Public utilities.