Small changes could make a big difference with BI insurance – Insurance Post

In the world of business interruption insurance, even small changes in policy wording can make a big difference. Aruna Chandrapalan, chair of the Chartered Institute of Loss Adjusters’ business interruption special interest group and head of forensic accounting services for Asia at Sedgwick, highlights the importance of clarity and precision in policy wordings.

Insurers, adjusters, and policyholders often struggle with the complexities of business interruption insurance. Uncertainty around BI cover can lead to disputes and delays in claims processing. However, Chandrapalan suggests that making small changes to policy wording could help dispel this uncertainty and streamline the claims process.

By ensuring that policy wordings are clear and specific, insurers can better communicate coverage details to policyholders. This can help prevent misunderstandings and disputes, ultimately leading to faster and more efficient claims processing.

Overall, Chandrapalan emphasizes the importance of attention to detail in BI insurance policies. Small changes in wording can have a significant impact on the clarity and effectiveness of coverage, ultimately benefiting both insurers and policyholders.