If only 50% of payroll expenses are insured, the business will be forced to dismiss staff in the event of a disruption to the Insured’s Turnover.

If Wages/Payroll is to be insured under the Dual Wages method, it is prudent to set the sub-limit for Claim Preparation fees much higher than if Wages/Payroll was to be fully insured under the Gross Profit item.

The recommended first step in calculating a claim under the Dual Wages method is to prepare a detailed schedule showing which of the following items?

Just as in the calculation of insurable Gross Profit, you take opening and closing stock into consideration to arrive at the Insured Rate of Wages in a Dual Wages calculation.

The Insured has a choice of two ways to present their claim under the Dual Wages method of insuring Payroll.

Any monies not able to be claimed in the Initial Period or Consolidated Period due to savings in Wages paid by the Insured, are lost to the Insured.

There is no Increase in Cost of Working cover under Item No. 3 - Payroll of an ISR policy.

Co-insurance under both Sections 1 and 2 of the base Mark IV or Mark V ISR wordings is subject to 85% co-insurance (sometimes referred to as Average), whereas this percentage is 80% in most Business Packs.

Which of the following items do not usually fall within the definition of Payroll?

The Option to Consolidate always produces a higher payout for the Insured over the

In the vast majority of claims involving significant periods of disruption to the insured business, it is found that the Insured is not fully indemnified for Loss of Payroll when the Insured has used the Dual Wages method. It therefore follows that this method of insurance is flawed.