What is business interruption insurance?
Business interruption protects against financial losses following material damage to property. It is commonly misunderstood that whilst contents or buildings policy will pay for the initial costs of a property damage claim, there is no financial recovery for losses made whilst your business is unable to trade i.e. turnover or loss of profits.
What is the business interruption indemnity period?
The indemnity period is the time for which insurers will pay for losses, capped to the maximum indemnity period. Our policies provide a 12 or 24 month indemnity period, which means that your financial losses will be covered for up to a maximum of 12 or 24 months.
What does a business interruption claim look like?
Business interruption claims come in various shapes and forms, depending on your trade. Here are a few examples from the wedding and event industry.
Wedding venue and hotel
Due to an outbreak of legionnaires disease from poorly cleaned showers, hot tubs or swimming pools, the public authority can close your business until the disease and problem are eradicated. This could lead to a loss of profits whilst your business is unable to trade, which would be claimable under a business interruption policy.
Mobile catering
If any of your kitchen equipment broke down before an event or wedding and you were unable to fulfil a contract, which resulted in a loss of profits, business interruption covers any financial losses.
Venue stylist
If there was a fire or flood at your storage unit, which damaged your venue props and accessories and this resulted in cancelled bookings, business interruption would cover any financial losses, including costs to arrange temporary storage premises.