Establishing Insurable Gross Profit

Webinar Overview

Establishing Insurable Gross Profit

Infinity Alliance v Heath Crawford decided in 2023 highlighted a gap in understanding, which was not exclusive to the defendant firm, that of establishing a firm’s insurable gross profit.

An increasing reliance upon standardised cover has probably reduced those skills necessary to correctly establish what an applicant firm’s gross profit happens to be and to solve some of the issues that this process reveals.

Course duration: 1 hr

Medium: On-line

Who should attend?

The workshop is suitable for anyone who is involved in general commercial underwriting or broking.

Course Objectives

By the end of the session, attendees will:

• understand what a firm’s insurable gross profit is and be able to distinguish this from an accountant’s definition of their principal’s gross profit
• appreciate the nature of fixed costs and why insurance for these is required
• be able to explain the application of the economic limit to claims settled on the basis of increased costs of working

Course Content

• Explaining the finding in Infinity v Heath Crawford
• Defining insurable gross profit and how this differs from the accountant’s definition
• Consideration of the potential pitfalls in calculating a firm’s gross profit.
• Explain how the rate of gross profit assist in calculating the “economic limit” applicable to ICOW claims
• Those situations in which AICOW settlements may be justified.

There will be an opportunity to ask questions at the end of the session.

To view our image and video capture consent statement, please click here.