No. You cannot assume what will occur and you cannot have two Sum Insured or two Declared Values on one Policy i.e. one for a total loss and one for a partial loss.

They are generally variable and sometimes they can be fixed on take and pay contracts in the agricultural and mining industries.

Most Insurers wording list purchases as an UWE on Business Packs and some include freight and packaging. You need to check the specific wording on each.

As a start we suggest you provide definition of Uninsured Working Expenses and examples to your client. You need to work with the client on getting this right. The MSM Helpline is also a source of assistance and we are generally to discuss your client’s situation and give you some preliminary views as part of this service.

In the event of a claim the Uninsured Working Expenses will need to be determined.

To avoid any dispute between the Insured/claims preparer and loss adjuster/Insurer, it is necessary to identify UWEs at the Policy inception. A failure to list them may end up disadvantaging the Insured through under-insurance and a prolonging of the claim process.

In order to appropriately determine the Sum Insured (Declared Value) for the Insured Gross Profit, UWEs need to be considered so we recommend getting it right as part of this process.

The Policy Wording normally states the UWEs must be listed.

To avoid any dispute between the Insured/claims preparer and loss adjuster/Insurer, it is necessary to identify UWEs at the Policy inception. A failure to list them may end up disadvantaging the Insured through under-insurance and a prolonging of the claim process.

In order to appropriately determine the Sum Insured (Declared Value) for the Insured Gross Profit, UWEs need to be considered so we recommend getting it right as part of this process.