Business interruption insurance is a term commonly heard in the media at this present moment. With many businesses facing much uncertainty as to whether their business will be able to trade at all the coming months, many may be looking to their insurance policies to see if they can make a claim.
But what does business interruption insurance normally cover?
Should a business face an unexpected event and be unable to trade as usual, business interruption insurance can cover either:
- the loss of earnings or profit incurred, and/or
- additional costs that are incurred due to disruption, such as the cost of moving operations to a temporary site.
What your business interruption insurance will cover, however, will depend on the type of policy you have taken out and, therefore, we recommend always purchasing insurance through a broker who can advise you with regards to the best policy for your business needs and potential risks.
What sort of event can Business Interruption Insurance cover?
If a business premise is damaged by a fire, storm or flood, most business interruption policies will likely cover any loss of earnings/profit. This may even cover the time period it takes to return the business to pre-loss trading status.
Outbreaks of disease are sometimes covered on a business interruption policy, however, not all policies cover all diseases which might mean your business has to close for health and safety reasons and therefore it is highly recommended you discuss this with your insurance broker should you want to make a claim.
In some cases, businesses may require specialist policies, for instance, if a business is heavily reliant on computers, they may wish to have a policy that covers their business against cyber risks such as hackers or viruses. This may also be the case for companies that rely heavily on equipment or machinery for their business operations, as add on policies are available to protect earnings or costs should machinery breakdown.
How do I make sure I have the right cover for my business?
Call your Insurer to check what would happen if your business needed to close due to COVID-19 or other reasons.
If you prefer independent advice as to whether your current policy is likely to give you the cover you seek then consider contacting Safe and Insured and we can advise you on the type of policy which will be most suitable for your businesses needs and they can also help you understand whether you are currently likely to be covered if your business needs to close due to the current pandemic.
Business interruption insurance can usually be purchased as part of a business insurance package, which combines a number of different policies into one, more manageable, policy.
What should I do if I need to make a claim for Business Interruption?
Firstly, speak with your broker.
At Safe and Insured, our experienced insurance advisors will be happy to look at your policy wording and advise if you are eligible to make a claim for business interruption, even if the policy was not purchased through our brokerage. Call 0808 161 7008 to speak with a member of the Safe and Insured team.
Why not Instruct a Loss Assessor?
If you are eligible to make a claim, Safe and Insured recommend instructing a Loss Assessor to help you ensure that the claim is settled in your best interests, such as Major Loss,
Major Loss will represent you, the policyholder only and will negotiate with your insurer directly to achieve a fair settlement for you.
The team of qualified and experienced insurance claims management professionals at Major Loss will not only negotiate the insurance claim on your behalf, but can also choose the best specialists to work with, such as accountants or surveyors, who are independent of your insurer, should your claim require further professional assistance.
Major Loss charges a service fee of up to 10% of the value of the claim for the service they provide. They will agree your fee with your before you instruct them. All fees are subject to a minimum of £1,000 + VAT.
For more information or to instruct Major Loss to handle your business interruption insurance claim, call 0808 161 7021 to speak with a claims handler, email info@majorloss.co.uk or visit https://www.majorloss.co.uk/.