Increased cost of working

Increased cost of working covers the expenditure a business incurs after a loss to keep producing or delivering: renting a fallback site, emergency subcontracting, exceptional transport, overtime, hired equipment. Payment obeys an economic limit, which is the key to the cover: such costs are met only up to the margin loss they avoid, so that spending one hundred to save eighty is covered only to eighty. That limit aligns the policyholder's interest with the insurer's and stops the cover from funding prestige spending or disguised rebuilding. Some policies add an additional increased cost of working allowance, free of the economic limit, precisely to meet spending that preserves a contract or a customer base without reducing the current month's loss. The problem solved is the passivity of a policyholder already covered for business interruption, who would have no reason to spend their own money to cut their insurer's bill.

The fire at the OVHcloud data center in Strasbourg on the night of March 9 to 10, 2021 destroyed the SBG2 building and some 12,000 servers, taking hundreds of thousands of websites offline. Customers who rebuilt their infrastructure elsewhere in a hurry incurred textbook increased cost of working, met only up to the margin loss that accelerated rebuild avoided.

frais de réduction de dommage, ICOW