Income and continuing expenses
The policy may use defined gross profit, revenue or another agreed measure. Insurance definitions can differ from accounting labels, so the figures and calculation need to be checked together.
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Business Interruption Insurance
Business interruption insurance addresses defined financial consequences of an insured interruption. Many arrangements depend on insured property damage; a fall in turnover by itself does not establish a claim.
Who it is for
Businesses examining the financial effect of a disruption to normal trading or a critical dependency.
Explore the cover
These are areas to discuss, not an automatic inclusion list. Available sections and cover depend on the selected wording and schedule.
Additional costs of recovery
Temporary premises, outsourcing or other expenditure may help sustain trading. Increased-cost provisions have their own conditions and limits, rather than paying every cost of staying open.
The recovery period
Allow for investigation, approvals, replacement equipment, rebuilding and the return of customers. The selected indemnity period should be discussed against that practical recovery sequence.
Suppliers, utilities and other triggers
External dependencies require specific extensions. Contingent interruption and non-damage interruption are not interchangeable with standard damage-triggered cover; any such protection must be established from the selected wording.
Information for quotations
Bring financial records, seasonal trading patterns, major suppliers and customers, recovery assumptions and any existing interruption wording.
Limitations and exclusions to discuss
An interruption does not itself establish cover. Review the insured trigger, financial definitions, indemnity period, waiting period, limits and dependency extensions.
Frequently asked questions
Is reduced turnover enough to trigger a claim?
No automatic conclusion follows. The cause, policy trigger and applicable financial calculation must be assessed together.
Are loss of rent and trading interruption the same?
They relate to different income interests. Identify whether the concern is an owner’s rental income or an operating business’s trading result.
Talk through your business.
Tell us what you do, what is changing and what you would like to understand. We can help organise the questions and the information needed for a meaningful insurance discussion.