Business Interruption is often an overlooked cover when people review their insurances.  This cover can be critical as it covers businesses for loss of income if an insured incident occurs that means the business premises cannot be used such as a fire or flood.

business interruption

Business Interruption is there to put the business back to the same trading position it was pre loss.

Three Main Type of Business Interruption

There are three types of business interruption, loss of revenue, loss of gross profit and increased cost of working.  The type of business interruption your business would need depends on your business model and is something to discuss with your broker.

Business insurance can cover:

  • Employee wages
  • Profits
  • Temporary Locations
  • Additional Expenses
  • Taxes
  • Loan Payments for the business
  • Training costs for employees to train on new/different equipment
  • Monthly mortgage, lease or rent payments

Depending on which cover you opt for would depend what is covered.

Extensions to Consider

Another element to Business Interruption to consider are the extensions. Extensions that may be available are:

  • Denial of access – an event preventing you from being able to access your business premises.
  • Suppliers’ extension – this is often overlooked. If a loss is suffered by one of your major suppliers, this may potentially affect your business.
  • Customers extension – this again is often overlooked. If a customer stops buying from you due to a loss at their side causing a decrease in income.
  • Failure of supplies such as electricity, gas, public utilities, water, and telecoms.

We recommend you look closely at this cover when your policy is up for renewal and have a discussion with your broker to ensure you have the right level of cover and the correct option for your business.  Should you wish to discuss in more detail please contact the team on 0808 161 7008.