Increased cost of working (ICOW) is included, provided it is economical to the save the lost income. Cover can also be provided for additional increased cost of working (AICOW) but this isn’t included as standard.
ICOW covers additional costs your business incurs for the sole purpose of preventing or limiting a loss in turnover following an insured event (e.g. finding another premises, storage, temporary staff). ICOW is conditional on an ‘economic limit’. This means that all additional costs claimed for must be reasonable and reduce the ultimate loss of revenue or profit by at least an equivalent amount.
AICOW covers increased costs of working ‘in addition’ to the gross profit or revenue sums insured. AICOW is not subject to the ‘economic limit’ test.