NSW Court of Appeal resolves a long-standing debate about the interpretation of a business interruption policy
Loss of Gross Profit
To those inexperienced in business interruption claims, the formulae stated in the policy to calculate the different types of financial losses insured under the policy may appear daunting. However, once explained, the principles behind the calculations are logical and mostly straightforward.
The most common claim is for loss of gross profit. If the turnover of my business reduces because my machinery is damaged, broadly three calculations determine how much gross profit I have lost: [Read more…]