Business Interruption Insurance
Protect against business losses following damage to your premisesSometimes the unexpected happens. When it does, Business Interruption Insurance ensures that your profits and income are protected.
If a fire breaks out on your business property, a storm causes operational downtime or a malicious break-in damages your business equipment, you could be forced to reduce or stop work. This can lead to significant financial consequences. But with BI Insurance, you can cover these risks and mitigate their potential financial impact, giving your business the support it needs to get back up on its feet.
Key benefits of choosing CKI
- Sound and impartial advice to get you the right insurance at the right price.
- A direct line to a dedicated contact for all of your enquiries.
- First-class service that always exceeds your expectations.
A great company that always delivers on those important things: ease of contact, customer service, price and knowledgeable and professional staff.
Bob Bellamy
Business Interruption Insurance FAQs
What is Business Interruption Insurance?
Business Interruption Insurance provides financial protection if your business is forced to stop functioning by an event that leads to physical damage or loss.
Business Building and Contents Insurance will help you to replace, repair or rebuild things that are physically lost, damaged or destroyed. However, it won’t cover your loss of income or any other costs associated with forced inactivity. This is where Business Interruption Insurance comes in.
If your business is forced into downtime due to physical damage, a Business Interruption claim can help you pay your workers, cover a drop in profits, pay the rent on an alternative location and even cover the cost of any loans you may have. This can help your business to cope with the difficult period of downtime before you can restart activity as normal.
What does Business Interruption Insurance cover?
Business Interruption Insurance covers events that damage your business premises or equipment, such as fire, floods or storms. They can also cover you if one of your suppliers or a neighbouring business suffers physical damage that disrupts your ability to trade.
To financially support you, the insurance can help you to pay for things such as a temporary move to a new location, operating costs, taxes and loan repayments. It will also reimburse you for the loss of profits and income.
Are there any common exclusions to be aware of?
It depends on the Business Interruption policy, but common exclusions include intentional damage by the business owner or the impact of economic downturns. Pandemics may also be excluded unless otherwise stated in your policy wording.
How does the Business Interruption claims process work?
To file a claim, you need to provide financial statements, tax returns, payroll records and other documents to verify business income before the interruption. Documents relating to the event causing the business disruption, such as a police report, might also be required.
Do I need Business Interruption Insurance?
Unlike Employers’ Liability Insurance, there is no legal obligation to arrange BI Insurance for your business.
However, if you operate from physical premises, such as a shop, restaurant, factory or warehouse, your business could lose significant income if you are forced to stop working.
Deciding whether to get Business Interruption Insurance is therefore dependent on the perceived risks to your business and their potential financial impact.
To help you decide whether it is something you need, take a look at this example.
Business Interruption Claim Example
You run a printing business producing materials for local and national clients.
An accidental fire breaks out overnight, destroying your machinery and some of the stock stored in the warehouse next door. The building is subsequently declared to be unsafe and you and your staff are denied access to it.
Financial implications include:
- The loss of income from unfulfilled printing orders and the subsequent loss of contracts.
- The need to pay staff to retain their skills for when your business is back on its feet.
- The cost of temporarily relocating your business to a new base.
- The cost of retraining your staff to use new printing machinery.
- Needing to keep up with tax and loan repayments despite income and profits being affected.
In this case, because your business premises was physically damaged by an insured event, Business Interruption Insurance can step in to cover the loss of profits and income. It will also help you to pay staff, the rent of a temporary new location, and keep up with other financial commitments.
What is the average cost of Business Interruption Insurance?
The cost of your Business Interruption Insurance will depend on the risks your business faces and the potential impact these could have on your income and your business’ ability to trade.
To find out more, talk to our team.
Contact Chris Knott Insurance for a
Business Interruption Insurance quote today on 01424 205009
