Turnover-related insurance products.

The forgetting book
Many providers are insufficiently responsive with regard to after-tax settlements for Business Indemnity Insurance and other turnover-related forms of insurance.

Year of account
Sometimes it takes many years before the required claims are processed. Premium income related to a specific signing year (year of account) should be booked in favour of the insurers who were the insurers at the time.

30 per cent in-and-decrease clause
Adequate business interruption insurance covers 30 per cent more than the sum insured. Thus, those who fail to declare their actual turnover on time have to pay an additional 30 per cent premium. However, this last point often gets forgotten.

Underinsurance
Not declaring on time results in lurking underinsurance. Especially if the insured interest turns out to be more than 30 per cent higher than the sum insured, this is potentially the final blow that threatens the company's survival.

Team RealXS offers you the option to automatically enjoin the expiry of data. This data is necessary for the continuation of adequate insurance for losses due to business interruption.

Business result
Unfortunately, entrepreneurs often ignore the request to submit their turnover data. Not infrequently, entrepreneurs then think it is about the amount on which corporation tax is paid. As a result, countless entrepreneurs (presumably more than 50 per cent) only discover significant underinsurance in the event of a loss.

Fixed charges / the business result
It usually takes some effort to make policyholders understand that, in a practical sense, what matters is the amount of fixed expenses PLUS the operating result. Of course, this turnover includes charges that are variable or lapse as soon as there is business interruption. Think of power consumption, gas consumption and temporary labour on call. Such costs then fall back or disappear altogether.

Resuming production
Where possible, it is advisable to consider an alternative location for production.
In addition, it is better to opt for overinsurance than risk underinsurance.
After an insurance year, if it is found that the sum insured was too high, the insured will receive up to 30% of the premium back.

Effective reckoning
Team RealXS has found a surprisingly simple key to checking turnover data to be provided by customers. Not infrequently, clients turn out to be on the wrong track when asked about gross profit and then mistakenly provide the same figures that were provided to the tax authorities.

Undeclared work
Entrepreneurs who carry out large-scale undeclared work do not have a clear view of the actual turnover. This too can lead to unexplained underinsurance. Of course, black turnover is not covered by insurance if there is a claim.