Business interruption insurance helps to protect your business if you are forced to temporarily stop trading due to damage to your business premises or equipment.
Unlike building insurance, which covers physical damage, business interruption exists to cover the loss of income your business would have received, or the additional costs you may incur, until normal trading is resumed.
Do I need Business Interruption insurance?
The questions you need to ask are:
Would I be able to trade if my physical assets suffered substantial damage?
How long would it take to get my business back to the same level of income and profitability, the business would have been at, had the loss not occurred? Eg. If you suffer water damage to business machinery and stock.
What is the lead time on replacement items?
When will building be dry and repaired?
In the event of relocation will you lose customers, revenue and staff?
Cover at a glance
The two most common causes of business interruption claims are:
- Fires
- Water Damage
Ultimately though, business interruption insurance exists to protect your business from any property related incident that affects your ability to trade. Eg.
- Impact
- Storm
- Theft
- Vandalism
- Denial of access
- Notifiable disease
- Failure of utilities
- Damage at customer or supplier sites
- It is important to be aware of the indemnity period. This is the time the you will need to get back to where the business would have been without the loss. It is not the time it takes to start trading. Doubling your period of cover from 1 to 2 years may only add 30% to your premium.
Why use a broker?
At J Bennett & Son we tailor the policy to suit you and your needs because every business is different. Cover levels are a factor in the premium and to ensure you get the best value we will always try to arrange a policy on a “costs exclusive” basis, which mean that insurers costs in defending a claim will not be taken out the indemnity limit.
You will have your own dedicated account manager, who will make it easy for you to switch from your existing insurer. We offer you flexible payment options, bespoke insurance solutions, specialist knowledge and impartial advice.
If a claim has to be made, we work with you, the insurer and the loss adjusters to get it settled as quickly and as satisfactorily as possible, removing the hassle and worry you may have. It’s why so many of our existing customers have been with us for over a decade.
We’ve been providing insurance that is built around you since 1908. For a personal approach to insurance and a chat about your needs, call us on 01494 450 450 or email us at insure@jbennett.co.uk today.
Download here our helpful fact sheet on Business Interruption Insurance simply explained.
