ProRisk Transfer & InsuranceRisk & Insurance

What the Policy Pays, Against How Long the Mill Is Actually Down

The sum insured says how much and the indemnity period says how long. The rebuild is set by neither, and the months past the end of the policy are the ones by which the buyers have gone.

The Policy

Two terms set by two different people at two different times, and quoted as though only the first exists

As it stands on the current policy, not as it was intended

How many months the insurer goes on paying, which is the term nobody quotes beside the sum

The Mill

Gross profit as the policy defines it — turnover less the variable costs that stop when production stops

This year's, not the year the sum insured was set on. The gap between them is the average clause

What Could Stop, One Row Each

One row per thing whose loss would stop production for months rather than days — a dye house, a stenter, a spinning section, the ETP without which nothing may run at all. Share of gross profit is how much of the mill's earnings depend on it, which for a single-line bottleneck is far more than its share of the capital. Months before output resumes is the honest column and the one to get from a supplier rather than from memory: it is survey, settlement, order, manufacture, shipping, civil work and installation, not the quoted delivery lead time. Months from first output to full is commissioning, the operators relearning it, and the buyer re-approving the line, which for a technical or a branded buyer is the longest part.

What StopsShare of Gross Profit %Months Before Any Output monthMonths From First to Full monthFull Recovery monthLost a Month costThe Whole Loss costThe Policy Pays costIt Does Not Pay costCovered Share %Overruns the Period 1/0Months Beyond It monthRow actions
————————
————————
————————
————————

Add line opens a form. Cells in the sheet stay directly editable.

Textile SchoolWhat the Policy Pays, Against How Long the Mill Is Actually Downwww.textileschool.com

What the Policy Pays, Against How Long the Mill Is Actually Down — free while in preview, with every line item and the download, at Textile School.