Business Interruption Insurance

Business interruption insurance covers you for the shortfall in gross profits, in the event that your business suffers an insured loss. (e.g. if your premises is damaged by fire, a flood, or a storm).

Business Interruption also helps to pay ongoing costs as well as additional increased costs, and protects your profits until the business is back on its feet. The length of cover you choose (the indemnity period) is commonly chosen from 6 months to 3 years. It is important to choose the right coverage for your business. You may be surprised how long it takes to get back to business, particularly after a major loss event. This cover should be reviewed at least annually, however if your business is experiencing growth, this cover should be reviewed on a regular basis to ensure the cover matches your expansion.

Things to consider

Business interruption insurance can:

• Keep you afloat while you wait for plans to be drawn up or council permits to be approved when rebuilding
• Cover the costs of finding and fitting new premises, advertising to let your customers know you have moved and when you’re fully open for business again.
• Ensures you are able to continue to pay and retain key staff while the business gets back on its feet.
• Covers interruption costs to your business, even if the damage is to another business you don’t own, such as suppliers not supplying, key customers unable to purchase your goods or when power or gas outages limit your ability to do business.