Indemnity Period

If the unthinkable happens, and for some reason your care home is damaged structurally, by an insured peril - fire, flood, storm etc - causing your care home to close (or part of it to close) for a period of time, then your business interruption cover kicks in to cover your loss of gross profit.

To affect this cover we need to know your estimated annual fee income, that's your complete turnover (all income) for your selected indemnity period (see below). Your indemnity period is the period of time that you have chosen to be insured for your loss of gross profit. The financial projection needs to be based on the insured damage occurring on the last day of your insurance policy period.

As an example, a care home with an income of £500,000 last year, projected fee increases to be in the region of 6% per annum (lucky care home owner!), so this year will have an income of £530,000, next year £561,800 and the following year of £595,500. Assuming they select the 24 month indemnity period, then their estimated gross fee revenue for insurance purposes needs to be £1,157,300, i.e. £561,800 + £595,500. If you ever want any help in calculating your estimated income for your indemnity period, please ask your CHIS executive and they'll be pleased to assist.

CHIS offer four indemnity period options within our cover:

• 12 months
• 18 months
• 24 months
• 36 months

We always recommend taking a policy that guarantees you at least 18 months, preferably 24 months, as building work can often spill over 12 in the unfortunate event of major structural damage.