Business Interruption or Loss of Profits insurance

A vital component of any business continuity plan, Business Interruption insurance is the critical part of ‘who pays.’   This type of protection requires special attention because it cannot be altered after a disaster occurs.

Business Interruption insurance is inextricably linked to property damage. Many aspects of Business Interruption insurance replicate business continuity planning.   The key features of Business Interruption insurances are:

  • The intention of BI insurance is to restore the business to the same financial position as if the loss had not occurred.
  • BI insurers insist that any property is insured against loss or damage so that funds are provided to pay for the repair or replacement of the ‘bricks and mortar.’

The sources of revenue to be insured need to be identified and can be either gross income rentals or revenue or fees or rates or other sources of income, or a combination. Some income, such as interest on investments or profits on the sale of assets are not insurable in normal BI insurances.

The business activities to be insured must be identified and need to capture all of the organisation's business, including future acquisitions, or newly created entities or new ventures.

Why take the risk with your business?  Contact either Neil Hancock or Christopher Bate to discuss your individual needs.    Alternatively please use our online enquiry form.