How we saved a manufacturing company over €30,000 on their Business Interruption premium

Challenge

A manufacturing company in the automotive industry asked Howden to undertake a review of their insurance programme. It became apparent that the Business Interruption ‘Gross Profit’ sum insured had the client drastically underinsured.

It wasn’t clear as to what basis the client was calculating the sums insured. We suspect that they hadn’t been properly explained the differences between Accounting ‘Gross Profit’ and Insurable ‘Gross Profit.’

Our solution

A clear indicator was that the client’s wage roll exceeded the Gross Profit sum insured.

We then advised the client of the correct formula when calculating ‘Gross Profit’ for insurance purposes.

Outcome

The client reverted with a revised Gross Profit sum insured of €3,700,000 per annum, a significant increase over their prior figure of €1,200,000.

We issued a Commercial Combined quote including the increased sum insured. Even with an increased level of cover, we were still able to provide the client with a saving of over €30,000 on their premium.

Our attention to detail and thorough analysis of the case resulted in receiving an order from the client. The client was extremely satisfied with this outcome.