BCM is concerned with anticipating threats to business survival and the achievement of objectives. It means conducting a business impact analysis to identify the key processes and functions within and beyond organisational boundaries that are essential for continuity. A business continuity plan (BCP) sets out the recovery strategies, priorities and actions that will be needed if a crisis occurs. A crisis could arise from a pure risk such as fire, or loss of a major customer or supplier. BCM reduces the likelihood of a disaster and minimis

loss of gross profit following reduced turnover resulting from, and occurring after, insured property damage. The gross profit indemnity enables the business to pay its standing charges, including payroll, and recover its net profit during the indemnity period, the period selected as being the time needed to restore normal trading levels. Specified working expenses are not at risk and are therefore deducted from turnover before arriving at the gross profit, the item to be insured. The policy also covers increased cost of working, e.g. renting alternative premises, subject to the cost not exceeding the amount of loss thereby avoided. Additional increased cost of working can be insured. The policy may extend to interruptions caused by damage at the premises to customers or suppliers, or resulting from loss of attractions, murder, suicide, food poisoning or infectious/contagious diseases. See AUDITORS’ CHARGES; SPECIAL CIRCUMSTANCES CLAUSE; CUSTOMERS’ EXTENSION; MATERIAL DAMAGE PROVISO; SUPPLIERS’ EXTENSION.

The plan sets out a firm’s objectives and shows in a systematic way how it will approach marketing, operations, finance, management and control. It also includes details of key personnel and covers strengths, weaknesses, threats and portunities. The FSA sees syndicate business plans as central to the ability of Lloyd’s to control and monitor the activities of managing agents. Consequently the FSA monitors the way in which Lloyd’s monitors syndicate business plans. Business plans are also required from intermediaries seeking FSA authorisiation. See LLOYD’S BUSINESS PLAN; FRANCHISE; FRANCHISE BOARD. most

Insurance for business people travelling abroad. It is similar in range of cover to the travel insurance arranged for holidays. As a business traveller travels regularly, at short notice. annual cover may be arranged.

One of three classes of use (class 2) often used by motor insurers in fixing car insurance premiums. The policy covers social, domestic and pleasure use and business use. It excludes commercial travelling and carrying passengers for hire or reward but car sharing is allowed as long as ‘lifts’ where money changes hands are not part of a business arrangement. This limited business class is more costly than Class 1, where the business use element is limited to the policyholder in person, but lower than Class 3 which includes commercial travelling as defined in the policy.

A test to help determine whether the claimant’s injury was in fact caused by the defendant’s negligence. It assists the court in rejecting those factors that could not have had any causal effect and should therefore be regarded as being too remote. ‘If the damage would not have happened but for a particular fault then that fault is the cause of the damage; if it would have happened just the same, fault or no fault, the fault is not the cause of the damage’ (per Denning L.J. in Cork v. Kirby Maclean Ltd (CA, 1952). The test does not work when there are two concurrent causes each of which is sufficient to cause the damage. The test would eliminate both causes and that cannot be correct, as both could have produced the result.

1. A payment to reinstate a contracted out person into the state second pension. 2. Reinstatement of life insurance cover after payment of a critical illness claim that would terminate the policy unless the death risk is bought back. 3. The payment of additional premium to secure cover in respect of a risk (e.g. motor cycling under a personal accident policy) specifically excluded from the cover.
***
In the context of general insurance this refers to the purchase of cover in respect of an otherwise excluded peril by means of the payment of additional premium.

The policy bought by pension scheme trustees to transfer an individual’s accrued benefits to a standalone insurance policy. Unlike a personal pension plan, the policy guarantees that if a transfer payment includes an element relating to contracting out of the state second pension, then a guaranteed minimum pension will be provided at retirement age. Also, unlike a personal pension plan, benefits in retirement from an s.32 policy are subject to maxima based on the limits laid down in the occupational pension scheme from which the entitlement was transferred.