Tips on setting your Business Interruption Insurance Maximum Indemnity Period
Time can pass quickly when recovering from a disaster…beware the Maximum Indemnity Period
Business Interruption policies are unique in that they require both a sum insured and a Maximum Indemnity Period (MIP). Through our conversations with risk and insurance professionals, it is evident that accurately establishing the Business Interruption value with an adequate sum insured and an appropriate Maximum Indemnity Period is a constant challenge.
In this article, we show how your Earnings Statement can be impacted when a Maximum Indemnity Period expires and list some of the tips to help you ensure your organization is not underinsured and can fully recover following a loss.
To start with, it's important to specify what we mean by a Maximum Indemnity Period. The MIP in a Business Interruption Insurance policy is a limited post-incident period for which an insurer will indemnify its client for financial loss.