that intends to close down for a
lengthy rebuild.
at both your BCP strategy and what
expenses you will continue to incur
versus those that are truly variable.
For example, a GP clinic that engages
contracted doctors will generally
be under no obligation to pay the
contracted doctors (as the contractor is
only paid a percentage of billings they
generate), while the business is closed.
However the business would risk those
doctors leaving to find an alternative
practice to engage with, meaning that
on re-opening, the business has lost its
key people.
(including wages and contractor
payments), as it provides flexibility
should a disaster strike.
of Working' should I cover?
also be extended to cover the additional
costs you incur that assist you getting
back to your pre-loss situation. This
could include costs such as overtime,
IT consultants, additional short-term
patients of your new location. Many
policies only provide a small amount
of automatic cover (some as low as
$10,000), and our experience has
revealed that even for small practices
this should be at least $100,000.
· How long it will take to repair/
or how long it will find to
commence trading at new
premises (with sufficient time to
allow for things such as council
approval, demolition, etcetera).
(i.e. when it is back to 100%
revenue and no further additional
costs are being incurred).
disaster and will therefore also dictate
the period you need to insure for. This
is referred to as the `indemnity period'
in the BI policy.
under the BI section?
under the `fire and perils' sections of
the policy i.e. fire, storm, earthquake
and theft, especially where malicious
damage occurs. The better policies also
provide cover in the event of:
· Closure by public authority
murder or suicide).
which means you are unable
to conduct your business.
impacts your business).
for example, consulting rooms within
a hospital will have different exposures
and needs to a rural GP clinic.
premises, so do I really need cover?
in recent times who truly had no or
little exposure to `their rooms' was a
specialist who essentially rented room
space on a casual basis at a number of
different locations, and would spend a
day or two at each location per week.
The specialist's BCP strategy would
simply be to move any patients to any