Business Interruption - Life Insurance for your Company

Business Interruption cover is a simple addition to most insurance policies, and can cover your business in several different ways depending on what you want when you take out the policy, or what you need at the time of an insurable claim.

It's important to note firstly, that a business interruption claim arises as a result of an insurable event. as an example of this, if your policy covers fire, and your business suffers a financial loss, potentially due to limited or cease trading, you would then be able to claim on your business interruption cover.

We recommend to almost all of our customers the necessity to purchase business interruption cover so you can move past the unpredictable event causing you that financial grief. This cover can generally include the following: Weekly Income, Gross Profit, Additional Increased Cost of Working, Claims Preparation expenses among other extensions and inclusions. Most commonly however, you will be working with Gross Profit. This is a simple way to ensure that if your business has limited or no trading potential whilst repairs are ongoing, fixed costs such as utilities, wages, rent and profit are all covered. The simplest way to calculate this is working out your total income minus the costs of stock or goods to earn it.

This cover is really important for businesses who have any sort of fixed operations location. This can include retail or food & beverage businesses, trades with a storage factory or offices, manufacturing & waste facilities, supply chain depots and the like. It can also cover business in civil works and excavation style fields, who can suffer insurable events to their mobile plant and machinery and need interruption cover whilst they are repaired or replaced.

If I can ask one thing of you following this blog, review your insurance policy. check your business interruption cover. Reach out to your own broker or myself to ask any questions you may have, even if it's to ensure its correct. Many, many businesses have had to close over the years as a result of small fires and water damage events that stopped them from trading even for a week or two. Business may stop, but the bills don't, which is why we want you to be able to pay them.

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