This paper provides an introduction to Increase in Cost of Working (ICW), a policy cover associated with Business Interruption (BI) insurance.
The paper sets out the common features of ICW cover and provides examples of ICW, such as sub-contracting, additional overtime, temporary repairs, premium costs for accelerated re-instatement and temporary premises. The writers share their experience of agreeing ICW costs and plans in practice. The paper also covers considerations in relation to the Maximum Indemnity Period (MIP) and the timing of reduction in turnover. Underinsurance is also briefly discussed.