What is Business Interruption Insurance?
If your business suffered an unexpected disruption, such as fire, flood or storm, or a major supplier closes because of one of these events, how long would it take to get it up and running again? And how much would you lose along the way?
Business interruption insurance can help make sure your business keeps running smoothly after an expected event, by covering the turnover that is lost – so you can recover and rebuild.
Who should consider it?
For most business owners, there are ongoing expenses that you need to pay even if you’re not generating any revenue – like staff wages, supplier invoices, rent or loan repayments.
Business interruption insurance can get you through a temporary crisis by protecting your cashflow – so you can pay these expenes, and help ensure the future of your business.
What can it cover?
Business interruption insurance can cover the loss of any sales you would have made while your business is out of action – plus any extra costs you incur to stay open.
Depending upon the policy, business interuption insurance cover can cover:
- Revenue / Income
- Fixed Costs
- Temproary Relocation
- Extra Expenses
- Civil Authority Ingress / Egress
What usually isn’t covered?
Exclusions, the excess you need to pay and limits of liability can vary greatly depending on your insurer. In order to claim under a business interuption policy, the loss has to arise from damage to property (buildings, stock and contents) which was insured and the damage to the property has to be claimable under that policy. Business interupption insurance is subect to the same exclusions as those in the policy covering building, stock and contents.