Commercial property and business

interruption insurances
Purpose
At the end of this unit, candidates should be able to understand commercial property and business
interruption insurances.

Assumed knowledge
It is assumed that the candidate already has knowledge of the fundamental principles of insurance as
covered in IF1 Insurance, legal and regulatory or equivalent examinations.

Summary of learning outcomes Number of questions

in the examination*
1. Understand the risk and control of fire, theft and other contingencies to property 24
and business interruption.
2. Understand the cover provided by and main practices of property insurance. 8
3. Understand the cover provided by and main practices of business interruption 5
insurance.
4. Understand the underwriting of property and business interruption insurance. 11
5. Understand how property and business interruption insurance claims are handled. 2
*The test specification (relevant to the M93 multiple choice question exam only) has an in-built element of flexibility. It is
designed to be used as a guide for study and is not a statement of actual number of questions that will appear in every exam.
However, the number of questions testing each learning outcome will generally be within the range plus or minus 2 of the
number indicated.

2017 M93/P93
Copyright © 2017 The Chartered Insurance Institute. All rights reserved.
 Important notes
M93
• Method of assessment:
Mixed assessment consisting of two components, both of which must be passed. One component is
a coursework assignment and one is a multiple choice examination. The details are:
1. an online coursework assignment using RevisionMate consisting of 10 questions which
sequentially follow the learning outcomes. This must be successfully completed within 6 months
of enrolment; and
2. a multiple-choice question (MCQ) exam at one of the CII’s online centres (paper based MCQs are
available in April and October for those sitting outside the UK). The MCQ exam consists of 50
MCQs. 1 hour is allowed for this examination. This exam must be successfully passed within 18
months of enrolment.
• This syllabus will be examined from 1 May 2017 until 30 April 2018.
• Candidates will be examined on the basis of English law and practice unless otherwise stated.
• Candidates should refer to the CII website for the latest information on changes to law and practice
and when they will be examined:
1. Visit www.cii.co.uk/updates
2. Select the appropriate qualification
3. Select your unit on the right hand side of the page

P93
• Method of assessment: Part I 14 compulsory questions (140 marks). Part II 2 questions selected from
3 (60 marks). Total of 200 marks. Three hours are allowed for this exam.
• The syllabus is examined on the basis of English law and practice unless otherwise stated.
• The general rule is that the exams are based on the English legislative position six months before
the date of the exams.
• Candidates should refer to the CII website for the latest information on changes to law and practice
and when they will be examined:
1. Visit www.cii.co.uk/qualifications
2. Select the appropriate qualification
3. Select your unit on the right hand side of the page

2017 2 of 5
Copyright © 2017 The Chartered Insurance Institute. All rights reserved.
 1. Understand the risk and control of 4. Understand the underwriting of
fire, theft and other contingencies to property and business interruption
property and business interruption insurance
1.1 Explain the causes of fire. 4.1 Explain the use and content of survey reports in
1.2 Explain the inception and propagation of fire, the underwriting process.
including their relationship. 4.2 Explain the importance of and the factors used to
1.3 Explain the relative fire hazards of trade calculate an estimated maximum loss (EML).
processes and materials used in business. 4.3 Explain the risk and pricing criteria used in
1.4 Explain the relative fire hazards of building underwriting property and business interruption
construction. insurance.
1.5 Explain the methods of fire detection, protection 4.4 Describe the key underwriting considerations in
and control. managing a property and business interruption
insurance portfolio.
1.6 Explain the definitions of theft.
4.5 Explain the importance of reinsurance and co-
1.7 Explain the inherent risk features of theft.
insurance with specific reference to property and
1.8 Explain the main methods of protecting property business interruption.
including money against theft.
4.6 Explain the application of warranties, excesses,
1.9 Explain the hazards arising from other deductibles and franchises.
contingencies and the methods of controlling
4.7 Apply the principles and practices of underwriting
these.
of property and business interruption insurance
1.10 Examine risk, control of fire and other to various scenarios.
contingencies in relation to relevant scenarios.
1.11 Apply the principles and practices of risk and 5. Understand how property and
control of fire, theft and other contingencies to business interruption insurance
property and business interruption to various
scenarios. claims are handled
5.1 Explain how property and business interruption
2. Understand the cover provided by and claims are handled.
main practices of property insurance 5.2 Calculate the settlement of property and business
interruption claims.
2.1 Explain the cover provided by property insurance
policies. 5.3 Apply the principles and practices of property and
business interruption insurance claims to various
2.2 Explain the clauses commonly used in property
scenarios.
insurance policies.
2.3 Explain the provision of terrorism cover.
2.4 Explain the cover provided in respect of money,
fidelity guarantee, goods in transit and
commercial all risks.
2.5 Apply the principles and practices of property
insurance cover to various scenarios.

3. Understand the cover provided by and

main practices of business
interruption insurance
3.1 Explain the cover provided by business
interruption insurance policies.
3.2 Explain how the sum insured and maximum
indemnity periods are selected.
3.3 Explain the clauses commonly used in business
interruption insurance policies.
3.4 Explain the importance of business continuity
planning with relation to business interruption
insurance.
3.5 Apply the principles and practices of business
interruption insurance cover to various scenarios.

2017 3 of 5
Copyright © 2017 The Chartered Insurance Institute. All rights reserved.
 Insuring industrial and process machinery. Research
Reading list study group 237. London: IIL, 2000.

The following list provides details of various Intelligent internal control and risk management.
publications which may assist you with your studies. Matthew Leitch. Aldershot: Gower, 2008.

Note: The examination will test the syllabus alone. Introduction to fire safety management. Andrew Furness
and Martin Muckett. Oxford: Butterworth-Heinmann,
The reading list is provided for guidance only and is 2010.
not in itself the subject of the examination.
Property insurance law and claims. Malcolm Hyde.
The publications will help you keep up-to-date with London, CILA, 2010.
developments and will provide a wider coverage of
syllabus topics. Security manual. 8th ed. David Brooksbank. Gower,
2007.
CII/PFS members can borrow most of the additional
study materials below from Knowledge Services. Smith’s law of theft. 9th ed. David Ormerod & David
CII study texts can be consulted from within the Williams. Oxford: Oxford University Press, 2007.
library. Riley on business interruption insurance. 10th ed. Harry
New materials are added frequently - for information Roberts. London: Sweet & Maxwell, 2016.
about new releases and lending service, please go to The handbook of health and safety practice. Jeremy
www.cii.co.uk/knowledge or email Stranks. 7th ed. Harlow: Pearson, 2005.
knowledge@cii.co.uk.
Walmsley on business interruption. 2nd ed. Celso de
Acevedo. Livingston: Witherby, 2016.
CII study texts
Commercial property and business interruption Ebooks
insurances. London: CII. Study text M93/P93 The following ebooks are available through Discovery via
Insurance, legal and regulatory. London: CII. www.cii.co.uk/discovery (CII/PFS members only):
Study text IF1 A manager's guide to ISO22301: a practical guide to
developing and implementing a business continuity
Books (and ebooks) management system. Tony Drewitt. Cambridgeshire: IT
A risk management approach to business continuity: Governance Publishing, 2013.
aligning business continuity with corporate governance.
Enterprise risk management: a common framework for
Julia Graham, David Kaye. Brookfield, Connecticut:
the entire organisation. Philip E.J. Green. Oxford:
Rothstein Associates, 2006.
Butterworth-Heinemann, 2016.
‘All-risks property insurance’. Chapter – Insurance
Fire safety and risk management: for the NEBOSH
disputes. Jonathan Mance, Iain Goldrein, Robert Merkin.
National Certificate in Fire Safety and Risk Management.
3rd ed. London: Informa, 2011.
New York: Routledge, 2015.
Business interruption policy wordings. London: Insurance
Institute of London, 2012.* Factfiles and other online resources
Claims and loss of profits insurance. RM Walmsley. CII factfiles are concise, easy to digest but technically
London: CILA, 1994. dense resources designed to enrich the knowledge of
members. Covering general insurance, life and pensions
Claims and standard fire policies, special extensions and and financial services sectors, the factfile collection
special perils. RM Walmsley. London: Witherby, 1994. includes key industry topics as well as less familiar or
specialist areas with information drawn together in a way
Corporate risk management. 2nd ed. Tony Merna and
not readily available elsewhere. Available online via
Faisal F Al-Thani. Chichester: John Wiley, 2010.*
www.cii.co.uk/ciifactfiles (CII/PFS members only).
‘Cover: causes of loss: Personal accident’. Chapter – The
• Business interruption insurance. Diane Jenkins.
law of insurance contracts. 6th ed. Malcolm A Clarke et
al. London: Informa, 2009. • Risk control. Ian Searle.
• Risk identification. Ian Searle.
Health and safety: risk management. 3rd ed. Tony Boyle.
Wigston: IOSH Services, 2010.* Chartered Institute of Loss Adjusters (CILA). Business
interruption special interest group. Available via
Fire insurance law and claims. R M Walmsley. London:
www.cila.co.uk.
CILA, 1997.
Fire safety: approved documents. Available via
Drafting insurance contracts: certainty, clarity, law and
www.gov.uk.
practice. Christopher Henley. London: Leadenhall press,
2010. LBIA guide to business interruption. London: LBIA.
Available online via www.london-bia.org.
Fire risk minimisation: Code of Practice for the Food
Industry. Insurers’ Fire Research Strategy Scheme, 2007.
Journals and magazines
Health and safety: risk management. 3rd ed. Tony Boyle. The Journal. London: CII. Six issues a year. Also available
Wigston: IOSH Services, 2010.* online via www.cii.co.uk/knowledge (CII/PFS members
Insurance theory and practice. Rob Thoyts. Routledge, only).
2010.* Post magazine. London: Incisive Financial Publishing.
Monthly. Also available online at www.postonline.co.uk.

2017 4 of 5
Copyright © 2017 The Chartered Insurance Institute. All rights reserved.
 Further periodical publications are available at
www.cii.co.uk/journalsmagazines
(CII/PFS members only).

Reference materials
Concise encyclopedia of insurance terms. Laurence S.
Silver, et al. New York: Routledge, 2010.*
Dictionary of insurance. C Bennett. 2nd ed. London:
Pearson Education, 2004.
Insurance: Conduct of Business sourcebook (ICOBS).
Available via www.handbook.fca.org.uk/handbook/
ICOBS.
* Also available as an ebook through Discovery via
www.cii.co.uk/discovery (CII/PFS members only).

M93
Exemplars
Exemplar papers are available for all mixed assessment
units. Exemplars are available for both the coursework
component and the multiple-choice component.
These are available on the CII website under the unit
number before purchasing the unit. They are available
under the following link www.cii.co.uk/qualifications/
diploma-in-insurance-qualification.
These exemplar papers are also available on the
RevisionMate website www.revisionmate.com after you
have purchased the unit.

P93
Examination guides
Guides are produced for each sitting of written answer
examinations. These include the exam questions,
examiners’ comments on candidates’ performance and
key points for inclusion in answers.
You are strongly advised to study guides from the last
two sittings. Please visit www.cii.co.uk to buy online or
contact CII Customer Service for further information on
+44 (0)20 8989 8464.
Alternatively, if you have a current study text enrolment,
the latest exam guides are available via
www.revisionmate.com.
Older guides are available via
www.cii.co.uk/pastexamguides (CII/PFS members only).

Exam technique/study skills

There are many modestly priced guides available in
bookshops. You should choose one which suits your
requirements.
The Insurance Institute of London holds a lecture on
revision techniques for CII exams approximately three
times a year. The slides from their most recent lectures
can be found at www.cii.co.uk/iilrevision (CII/PFS
members only).

2017 5 of 5
Copyright © 2017 The Chartered Insurance Institute. All rights reserved.