Business interruption

Business interruption insurance will reduce your loss of profit if there is any interruption or interference to your business.

When you suffer a business interruption, the financial loss can be more devastating than the physical loss.

Business Interruption (or business continuity, as it's sometimes known) insurance can help minimise the financial impact if an interruption to your normal business operations occurs following a physical loss to your business assets.

Business Interruption insurance is designed to help you to carry on through the event and after the damage has been repaired, helps fund your increased operational expenses and inject lost profits into your balance sheet.

Business interruption cover can also be purchased, to protect the income or profit of a business following insured loss or damage. This type of insurance may cover gross profit, wages, payroll and redundancy payments along with additional costs of working, costs for reinstating records and loss of rents.

Business interruption policies are commonly extended to include suppliers, customers, denial of access and public utilities extensions.

Business interruption insurance makes sure you have the necessary funds to:

  • Maintain your income stream while your doors are closed
  • Pay for additional expenses, e.g. temporary premises or additional costs to source product
  • Advertise to let customers know that you have moved to a new location or any other effects of the business interruption
  • Meet financial obligations to the bank, shareholders and staff

Do I need business interruption insurance?

Consider finding out more about business interruption insurance if you answer yes to any of the following:

  • I or my business owns a commercial property
  • My business is a manufacturer, wholesaler or retailer
  • My business relies on key stock, equipment, suppliers or customers which are not immediately replaceable
  • My business is financed by debt
  • My business would lose revenue if unable to operate from our existing building
  • It would be difficult to find alternative premises
  • My business does not have a Business Continuity Plan
  • My business is seasonal - we cannot afford to lose our peak season
  • My business relies on utilities