Business Interruption Insurance

Preparing your business for the unexpected


What is Business Interruption Insurance?

Business Interruption Insurance protects your income when the worst happens. If your business cannot operate as usual or has to close because of damage caused by an unexpected event, it covers you for loss of earnings and profit, as well as costs such as wages, utilities, renting a temporary office or hiring equipment. The damage could be the result of a flood, fire, burglary or vandalism. 

Why does my business need it?

The disruption to your business from fire, theft or property damage is more than what’s visible on the outside. Even if Commercial Property Insurance covers your building, equipment and stock, you still need to pay your employees, cover bills and keep up with other obligations whilst not running business as usual. This lack of income could put you in financial difficulty.

This is where Business Interruption cover comes in. It aims to return your business to its original position before disaster struck and helps you to maintain relationships with your clients and suppliers.

Although the law doesn’t say you need to have Business Interruption Insurance, it could prove to be the lifeline your business needs in difficult times. For example, you may feel confident that an accident won’t shut down your company for a long period of time, but the scale and impact of a disaster are not easy to predict. 

Having the right cover in place will give your business the time to recover the material loss, trade and help keep you operating as smoothly as possible.

What does it cover?

Before deciding on a policy, you will need to work out your indemnity period. This is the length of time the cover runs for and will be completely unique to your trade. 

To do this, you’ll need to calculate how long it will take to get your business back to the same position it was in before the event, which may involve thinking about rebuilding times, ordering or hiring new machinery and loss of market share. An expert broker could help you with this and make sure your business is properly protected.

Business Interruption cover typically includes:

  • Compensation for loss of income if your business has to temporarily move location
  • Compensation for the profit your business would’ve earned (based on previous financial records) if the event didn’t happen
  • Operating costs, such as utilities or a mortgage, that must be paid even though you’re not in business
  • Costs of working from a temporary location while your business premises are repaired

Find a business interruption insurance broker

Find a Broker

Key cover benefits

  • Protects years of business goodwill so you don’t lose out
  • Tailored to your business needs and risk level
  • Backed by connected expertise and thinking
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