Business interruption insurance is designed to cover your business for loss of income as a result of not being able to continue trading following an insured event such as a fire, storm, flood, or major theft which affects your ability to trade.
In the event of such an unfortunate occurrence, it is important to consider how you would keep your business running in the interim period.
How would you pay the bills, pay your staff, maintain relationships with clients and suppliers?
Our business interruption insurance aims to put your business back in the same trading position it occupied before the damage occurred.
While Property Insurance will cover reinstatement of your buildings, machinery and contents, it is Business Interruption cover that will minimise the financial impact.
It is therefore important to get it right. The indemnity period is crucial and should reflect a worst-case scenario and how long it would take for your business to return to the same trading level before the loss occurred.
How are Business Interruption policies arranged?
BI policies are usually arranged on either a gross profit basis or on a gross revenue basis, depending on the trade.
Gross profit basis is mainly used for manufacturing and retail whereas gross revenue is usually used for services and professional businesses.
Cover is usually limited to interruption following insured damaged that has occurred at premises either owned or occupied by the insured.
Policy extensions can be added that amend premises limitation to include interruption caused by damage at premises used by the insured’s neighbours, customers, suppliers, utility providers and other third parties.
BI policies can also be extended to cover losses caused by events including disease outbreaks and bomb scares that affected the insured’s premises.
Contact us today on 0161 833 2100 for further information and a quote