Business Interruption Insurance

Protecting your business from elements out of your control.

What is business interruption insurance?

Business interruption cover is often overlooked or misunderstood but at its most basic, it covers your loss of income following an insured event. Should you suffer an interruption to your business this cover is vital to keep your organisation afloat.

80% of UK companies that suffer a major loss do not recover. Getting this cover right can be the difference between survival and catastrophe.

Contact one of our expert team on 01242 898387 to discuss the right option for you.

Assessing Your Risk

Before looking at this cover it is wise to review your continuity plans to see where losses are more likely to occur, and what impact they could have on your business. Continuity planning will protect your business and business interruption cover is a key part of that.

We can help you identify your risk of losses in key areas such as:

  • Damage to stock, equipment, or your premises by unforeseen disasters such as fire or flood
  • A denial or hindrance of access to your premises imposed by a public authority due to an incident in the close vicinity. If you or your client are unable to access your premises, how would this affect your business?
  • It is also important to understand your position within a supply chain. If you have one main supplier or key customer who suffers an insured loss at their premises which leaves them unable to trade, how will this impact your business?

Although the most obvious events are physical, it may be that, following a review of your business, you identify other areas which leave you exposed. We can help you to understand the ways in which a business interruption policy can be extended to cover the circumstances listed above and more.

Gross profit / Gross revenue

Business interruption is generally written on either a gross profit or gross revenue basis. Typically as gross revenue basis is used for businesses which are service based whilst gross profit is generally seen as more suitable for retail and manufacturing businesses.

In addition to assessing the sum insured you require; it is important to think about the indemnity period.

Indemnity Period

Unlike other insurances the purpose of business interruption insurance cover is to negate the impact of the loss,. This may take longer than you think as it is not just about rebuilding the physical but, perhaps more importantly, your reputation and position within your industry.
Opting for a longer indemnity period can be invaluable.

Increased Costs of Working

This type of insurance can cover increased costs to keep trading such as having to move premises may seem more cost effective and appropriate when a business is unlikely to suffer significant downtime. But this cover is heavily restricted and may not cover the full extent of the loss.

Get in touch

If you’re worried about how your business may be damaged by indirect interruption, please contact us and we can help. We can help you to understand the profile of your risk and to build a program of insurance to make sure you are protected. Contact one of our commercial insurance experts on 01242 898387.

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