Joint IIL & LBIA Lecture. Harry Roberts BSc (Hons) FCA FCILA MAE Director Technical, Risk & Compliance 19 th February 2009. ADDITIONAL INCREASE IN COST OF WORKING – An Adjuster’s View. Additional Increase in Cost of Working. Why is AICOW an issue? What is the cover / wording?
ADDITIONAL INCREASE IN COST OF WORKING –
An Adjuster’s View
THE INSURANCE BY ITEM NO.2 IS LIMITED TO THE ADDITIONAL EXPENDITURE BEYOND THAT RECOVERABLE UNDER ITEM NO.1 NECESSARILY AND REASONABLY INCURRED DURING THE INDEMNITY PERIOD FOR THE PURPOSE OF MAINTAINING THE BUSINESS DURING THE INDEMNITY PERIOD
(DEFN: Business – As per details provided to Insurers)
THE ADDITIONAL EXPENDITURE BEYOND THAT RECOVERABLE UNDER CLAUSE (b) OF ITEM NO.1 ON GROSS PROFIT AS THE INSURED SHALL NECESSARILY AND REASONABLY INCUR DURING THE INDEMNITY PERIOD IN CONSEQUENCE OF THE INCIDENT FOR THE PURPOSE OF AVOIDING OR DIMINISHING THE REDUCTION IN TURNOVER
Policy wordings – key common phrases:
Printers, publishers, producers of luxury goods or services
Blundell Spence, security
Customer threat, Plan B strategies
Examples of expenditure that has been paid as AICOW:
DEFINITELY NOT – M.D. underinsurance
You got to ask yourself a question “do I feel lucky?”. Well, do you PUNK?