Unfortunately, many Insureds and Brokers try to lower the cost of the premium of BI / CL policies, reducing the maximum period of indemnity, which is in VANTEVO’s opinion a serious mistake.
Indeed, this policy, which must be a “tailored suit” (no two companies are the same and there should not be two policies the same) must be designed with a serious loss in mind. To do this, we must calculate how long it would take to normalize the risk production and commercial activity after a very serious loss. That should be the PMI to consider in the policy.
In this calculation, it is necessary to take into account the period of debris removal, the time to obtain permits and licenses, the delivery times of the fundamental machinery, the adjustment time of the new machinery… and this in many companies is closer to the 24 months than at 12 months.