Business interruption premium is normally calculated by applying a rate to the Gross profit sums insured.
The rate applied will be based on the property damage rate and so will reflect a variety of factors including the following;
- the special perils insured,
- Construction of the premises and heating,
- housekeeping and
- the presence of fire extinguishing appliances.
This rate is then adjusted to reflect business interruption specific factors, including the maximum indemnity period.