Insurance Underwriting – Non-UK (WUE) Practice Exam

Uninsured working expenses are the costs that a business would incur to continue trading during a period of interruption but which the policy does not automatically cover. These items are typically selling or distribution costs rather than the core overheads the BI policy is designed to indemnify. Carriage and packaging fit this idea because they are costs incurred to move and deliver goods to customers. They arise specifically in the process of completing sales and are not part of the fundamental ongoing overheads that BI usually indemnifies. Therefore, they are treated as uninsured working expenses. Wages, rent, and utilities are generally considered part of the ongoing overheads or the types of expenses that are covered or recoverable under the BI extension for working expenses, depending on the policy wording. Hence, they are not the item classified as uninsured.