What is Business Interruption Insurance?

If your business suffered an unexpected disruption, such as fire, flood or storm, or a major supplier closes because of one of these events, how long would it take to get it up and running again? And how much would you lose along the way?

Business interruption insurance can help make sure your business keeps running smoothly after an expected event, by covering the turnover that is lost – so you can recover and rebuild.

Who should consider it?

For most business owners, there are ongoing expenses that you need to pay even if you’re not generating any revenue – like staff wages, supplier invoices, rent or loan repayments.

Business interruption insurance can get you through a temporary crisis by protecting your cashflow – so you can pay these expenses, and help ensure the future of your business.

What can it cover?

Business interruption insurance can cover the loss of any sales you would have made while your business is out of action – plus any extra costs you incur to stay open.

It may also include:

• Ongoing operating expenses, such as electricity and rent
• Relocation costs for moving to, and operating from, a temporary location
• Training costs for operators of replacement machinery
• Closure of your business premises due to government-ordered street closures or curfews
• Damage to a supplier’s premises which has a negative flow on effect for your business operations

What usually isn’t covered?

There are exclusions. There is also often a deductible or excess and limits on cover.