Business Interruption Insurance: Safeguard Your Business from Unexpected Disruptions
In life, unexpected situations can arise at any given moment. At times, these unexpected situations can affect your business operations which can lead to significant financial losses, should the nature of the situation be extreme. Whether you're managing a small company or part of a major corporation, understanding business interruption insurance is vital in safeguarding your business and ensuring its ongoing success.
What is Business Interruption Insurance?
The idea of Business Interruption Insurance is to cover the financial loss incurred when your business is unable to trade. The purpose is to allow you to recover to the normal operations prior to the disruption. As well as loss of income cover it also covers any additional expenses you may have incurred directly from the disruption.
Your property insurance policy will cover the structural damages but will not cover financial losses caused by renting alternative premises, new equipment, loss of revenue etc. whilst your business is temporarily out of action.
A business’s BI cover starts following a loss or damage to plant, equipment, but it could also be to a supplier or large customer. Insured events are situations such as fires, storms, and floods, that cause direct damage to the business property, or equipment that is necessary for the operation to function, or third-party businesses where extensions have been arranged.
Types of losses covered under business interruption insurance:
- As mentioned above, natural disasters.
- Accidental property damage.
- Utility failures such as power outages.
- Unable to access your premises.
- Riots, strikes and other civil unrests.
- Damage to a supplier’s or customers premises.
Do I need business interruption insurance and what will affect my policy?
One of the main factors in the decision to take out business interruption cover depends on how long you can afford to stop trading should a situation occur.
As a general rule of thumb, if your business relies on a physical location, certain equipment, or specific stock to gain income, business interruption insurance may be a sensible and valuable investment. This would typically include industries such as retail, manufacturing, hospitality, law firms and accounting practices.
Other deciding factors that affect your business interruption insurance cover include the level of cover you choose, the limits of your policy and the period of time you need the coverage for.
What are the different types of business interruption insurance policies available?
There are many different levels of insurance in this field, with the policy cover usually relating to the nature of the industry in which the business falls into, and the way the income is earned. Contact us today to discuss with a broker and find the type of coverage that suits your business.
We can arrange cover that suits you…
It is vital to understand that Green Insurance Group arrange business interruption insurance as an add-on to various business property insurance policies and not as a standalone cover. This type of cover can be an add-on to material damages cover or included in certain package policies. Every business differs with what policy suits them, so the extent of your needs should always be discussed by a broker to ensure you are given the correct cover.
Contact us today to speak with an expert broker and arrange a quote…