Business Interruption Insurance

This covers loss of gross profit and/or additional costs incurred in maintaining business following a claim at your premises under the Property Damage section. For insurance purposes the amount insured for gross profit needs to be calculated by deducting the cost of material purchases from the turnover on annual basis. This insurance will pay your loss of profit for a specified period of time following the claim, known as the Indemnity Period.

The Indemnity Period should be the length of time it will be take your business to recover following the claim, to the position your business would have been in had the claim not happened. The Indemnity Period is usually 12 months, but this can be increased if 12 months is not enough but you will need to insure for an amount reflecting the longer period. If you will not lose business in the event of a claim, cover can be restricted to cover increased costs only, e.g. renting alternative accommodation, and you will need to insure for an amount adequate to cover the increased costs.

The premium is dependent upon the same factors as the Property Damage and the Indemnity Period. The policy can be extended to cover your loss of profit following loss or damage (due to risks covered by your Property Damage insurance) at other locations, e.g. suppliers, customers and storage locations. Other extensions of cover are available, e.g. transit, denial of access, utilities, notifiable disease, death or suicide.