Complexity Claim Model
Please enter your score between 1 and 6 in the box after each question and see the complexity score change. Please answer all 10 Questions for an overall score.
Loss of Turnover
| Q1 | The 'art' of a business interruption claim is accurately forecasting the anticipated indemnity turnover. Please rate the volatility of the business giving consideration to seasonality, growth, etc. Volatile = high score | More Info | ||
| Q2 | The impact an incident has on the business will in part depend on the availability of stock to support production and feed sales. Please rate the extent the business operates to a 'just in time' (low stock holding) model. JIT = high score | More Info | ||
| Q3 | In considering the loss to the insured business it may be necessary to take account of other unaffected business units in the same group that are selling the same or similar things. Please rate the extent to which these unaffected businesses can meet lost sales. No other businesses in group = low score, 1 other = 3, 2+ = 6 | More Info |
Gross Profit
| Q4 | The gross profit percentage will be a function of all the product lines and services sold. Please rate the range of profit margins on all lines or services from narrow (similar rates) to a wide range. Wide range = High score | More Info | ||
| Q5 | Where there are differing profit margins in product or service lines, are these steady or fluctuating? And is fluctuation accentuated by a changing mix of products and/or services. Please rate the degree of margin volatility. Volatile = High score | More Info | ||
| Q6 | The insured gross profit should cover all fixed costs as well as costs that will be retained in the event of a loss (staff). Please rate the degree to which the insured gross profit resembles that of the gross profit in the management accounts for the business entity. Same = Low score more divergent = high | More Info |
General
| Q7 | In the event of a loss destroying the place of work, the flexibility to find alternative accommodation will depend on many things. One of the principal issues will be the ability to move or replace the workforce. After considering the (unique) skill levels of the workforce, please rate the likelihood of the majority of staff travelling an extra 30 miles. or being replaced easily at the new site. All travel = low score, none = 6 | More Info | ||
| Q8 | In considering the infrastructure needed to generate sales (plant, machinery IT etc) and the degree to which these items are ex stock or bespoke, please rate the anticipated lead time for reinstatement. Quick = Low score | More Info | ||
| Q9 | To what extent do your customers purchase only from you, or multisource. Please rate the ease with which your customers would be able to find an alternative supplier. Easy = High score | More Info | ||
| Q10 | To what extent has the company considered a post loss communication strategy internally to staff and externally to the public (media), customers, suppliers and financiers? Well prepared = Low score, No plans = 6 | More Info |
| (GREEN) Simple business from a BI perspective, management should be able to cope with some guidance from the risk and insurance department | |
| (AMBER) Some areas of complexity but with professionalcoaching and support will be able to compile and submit a BI claim | |
| (RED) A number of areas of complexity such that it would be wise to delegate responsibility for the BI claim completely |