Cash Flow Insurance
The IUA Policy Wording can be used to provide an Insured with a replacement to their interrupted cash flow as a result of an event for which there is material damage insurance in force.
IUA Lumped Extensions also provide cover for those extra costs which can arise while returning the business to normal during the selected Indemnity Period.
Cash Flow
Cash Flow is vital to the survival of any business.
Cash Flow is used to pay:
- employees,
- suppliers,
- bills and
- most importantly the business owner.
An interruption to a business' cash flow will increase the costs to the business as a result of increased borrowing and potentially place the ongoing existence of business into uncertainty (difficult times).
With IUA a business can elect to insure its cash flow.
In this case, cash flow is a list of the cash expenses incurred less those cash expenses that will cease such as payments for purchases as a proportion of its cash income, alternatively the insured can simply nominate a sum to insure based on their requirements.
Benefits:
The benefits of the IUA policy include:
- no average,
- no deductions for savings in business overheads and
- claims paid every 7 days where practical.
This means that Turnover figures for the period before the loss and after the loss are provided quickly.
The Policy also has an agreed Rating Classification and Flexible Indemnity Periods - 13 weeks up to 104 weeks.
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