Business Interruption Insurance
Business interruption insurance is a crucial part of any business to ensure longevity and continuity. Should your business experience damage by an insured peril or perhaps it relies on one larger supplier that experiences a shut-down, your business will most definitely suffer.
Business interruption insurance is designed to indemnify your business for continuing expenses, as well as loss of income during a shutdown. In other words, it is intended to put a business in the same financial position it would have been in, had no loss occurred.
A huge percentage of businesses that experience a large-scale shutdown never recover, and end up going out of business. This type of insurance cover will protect you against such an inevitable possibility.
Typical fixed expenses which would be covered under the Business Interruption Insurance Policy are wages and banks’ interests – these would continue to be incurred even though your business would not be operating.
This type of insurance typically covers your business up to a period of 12 months of business interruption however this can be extended if required.