October 8th 2025 webinar - Establishing Insurable Gross Profit
Summary
Establishing Insurable Gross Profit The case of 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 an applicant firm’s gross profit and to overcome some of the issues that this process can highlight
Learning Objectives
- Understand the nature of what insurable gross profit is and how it differs from the accountant’s definition
- 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
Content and Learning
- 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 assists in calculating the ‘economic limit’ applicable to ICOW claims
- Those situations in which AICOW settlements may be justified
David Hole
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David Hole
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CII Accredited
This demonstrates the quality of an event and that it meets CII member CPD scheme requirements.
1 hour's CPD can be claimed for this event if relevant to your learning and development needs.
It is recommended that you keep any evidence of the CPD activity you have completed and upload copies to the recording tool as the CII may ask to see this if your record is selected for review. Details of the scheme can be viewed online at www.cii.co.uk/cpd.