Business Interruption Insurance
What is business interruption insurance?
Business interruption insurance (sometimes referred to as business continuity cover) is a specialist policy designed to protect you from a range of costs in the event that your business cannot trade for a period of time.
What protection can business interruption insurance offer?
When something goes wrong, a business will typically have business premises and contents insurance cover in place to repair or replace items that are damaged. But what about the more hidden costs? It might take days, weeks or even months to repair damage to your business property and equipment in the event of a fire or flood, for example. Business interruption insurance can provide protection from the costs that arise as a consequence of disaster taking place.
- Loss of business earnings while unable to trade normally
- Staff wages covered when business cannot trade
- Loss of rental income
It’s also conceivable that something happens at someone else’s business that creates a business interruption issue for you. A fire at a key supplier might mean that you have to halt production because you haven’t got access to a key component or part, for example. Alternatively, it may be that a nearby premises has an issue – a gas leak or explosion, which means that your business is affected, too. Again, a Business Interruption Insurance policy can accommodate this situation, protecting you where you cannot trade effectively.
Insurance for increased costs of working
It’s possible that you have to relocate your business temporarily while your premises are being repaired. It may be that you have to hire in equipment and machinery because what you own has been damaged or destroyed. Business interruption can provide cover in this situation, where you incur additional costs, and protect you from the increased outlay that you face.